Chances are that if you own a flat in Disley you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Disley can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Disley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold owner of a studio apartment in Disley on the market with a lease of fraction over sixty years unexpired. Reuben informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were contacted by Mrs E Bernard , who owned a recently refurbished flat in Disley in April 1997. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Identical premises in Disley with an extended lease were valued about £233,200. The average ground rent payable was £60 billed annually. The lease ended in 2087. Taking into account 61 years outstanding we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including expenses.
In 2010 we were called by Mr Jamie García who, having acquired a one bedroom apartment in Disley in July 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable flats in Disley with an extended lease were worth £166,800. The average amount of ground rent was £50 invoiced per annum. The lease terminated on 24 October 2076. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 plus professional charges.