Disley leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount 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 lawyer to check your eligibility. In certain cases you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Santander | |
| The Mortgage Works |
The conveyancing solicitors that we work with procure Disley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In 2014 Jude, started to get close to the eighty-year threshold with the lease on his basement flat in Disley. In buying his flat two decades ago, the length of the lease was of no bearing. Luckily, he recognised he needed to take steps soon on a lease extension. Jude arranged for a lease extension just in the nick of time last September. Jude and the landlord in the end settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more costly by at least £1,075.
In 2009 we were called by Dr J Baker who, having bought a first floor flat in Disley in October 2010. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar flats in Disley with a long lease were valued about £260,200. The average amount of ground rent was £65 invoiced quarterly. The lease concluded in 2092. Given that there were 66 years outstanding we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of costs.
In 2011 we were approached by Dr Aiden Martínez who, having moved into a one bedroom flat in Disley in August 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar properties in Disley with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2081. Having 55 years remaining we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including legals.