Droylsden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Droylsden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Droylsden you must check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Droylsden flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Droylsden with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Droylsden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Droylsden valuers.
Elijah owned a conversion apartment in Droylsden on the market with a lease of just over 61 years remaining. Elijah on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last year we were phoned by Mrs Victoria Stewart , who completed a ground floor flat in Droylsden in May 2009. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in Droylsden with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease finished on 12 November 2105. Given that there were 80 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.
Last month we were e-mailed by Ms W Laurent , who was assigned a lease of a basement flat in Droylsden in April 2002. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Similar flats in Droylsden with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected monthly. The lease ended on 28 October 2094. Considering the 69 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.