As the length of the unexpired term of a Droylsden residential lease diminished so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be fractional nevertheless 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 known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. The majority of flat owners in Droylsden will qualify for this right; however a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Droylsden with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Droylsden can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Droylsden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her two bedroom apartment in Droylsden, Alice commenced the lease extension process as the 80 year mark was swiftly nearing. The transaction was finalised in September 2015. The landlord’s costs were negotiated to approximately 450 pounds.
In 2011 we were approached by Ms I Ramírez who, having acquired a one bedroom apartment in Droylsden in September 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Droylsden with 100 year plus lease were valued around £250,400. The mid-range ground rent payable was £65 collected yearly. The lease ended in 2089. Taking into account 64 years left we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
In 2009 we were called by Mrs D Phillips who, having owned a first floor flat in Droylsden in July 1999. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparable residencies in Droylsden with 100 year plus lease were worth £189,000. The average ground rent payable was £55 billed yearly. The lease ran out on 10 June 2078. Taking into account 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.