As the length of the unexpired term of a Droylsden domestic lease diminished so does its value and therefore the value of your property. If the residual term has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Droylsden will meet the qualifying criteria; however a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you better control over the value of your Droylsden leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her ground floor apartment in Droylsden, Naomi commenced the lease extension process as the eighty year mark was swiftly advancing. The legal work was concluded in January 2015. The landlord’s fees were restricted to a tad over 650 GBP.
Mr Aiden Davies moved into a first floor flat in Droylsden in February 2005. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparative homes in Droylsden with 100 year plus lease were worth £181,600. The average ground rent payable was £55 billed monthly. The lease came to a finish on 13 June 2076. Having 52 years unexpired we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including fees.
Last Winter we were approach by Mr N Torres , who purchased a newly refurbished apartment in Droylsden in April 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Droylsden with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2096. Taking into account 72 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including expenses.