Unfortunately that a Disley residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Disley property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Disley will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Disley with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Disley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Disley valuers.
Subsequent to lengthy correspondence with the landlord of her garden apartment in Disley, Chelsea initiated the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in August 2015. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Dr Charlotte Smith who, having was assigned a lease of a basement flat in Disley in September 2010. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical properties in Disley with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease lapsed on 28 October 2083. Taking into account 58 years left we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.
In 2013 we were approached by Dr K Reed who, having completed a ground floor flat in Disley in April 2007. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical homes in Disley with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed quarterly. The lease end date was in 2103. Having 78 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.