Disley leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Disley will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Disley with over one hundred years outstanding 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Disley can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this area.
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 Disley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn was the the leasehold proprietor of a studio flat in Disley on the market with a lease of a few days over sixty years remaining. Finn on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured satisfactory deal informally and sell the flat.
In 2010 we were e-mailed by Mr E Alexander who, having took over the lease of a one bedroom flat in Disley in August 2009. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Disley with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was in 2100. Given that there were 74 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Summer we were e-mailed by Dr B Bernard , who purchased a basement flat in Disley in September 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Identical flats in Disley with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 collected quarterly. The lease ran out on 8 September 2089. Given that there were 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of expenses.