When it comes to long leasehold premises in Ditchling, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Ditchling with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years outstanding, under the relevant statute the landlord can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Ditchling with over one hundred years left on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Ditchling,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 in-depth market knowledge and the close ties they enjoy with Ditchling valuers.
Subsequent to unsuccessful negotiations with the freeholder of her ground floor flat in Ditchling, Isabel initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension completed in January 2008. The landlord’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. P Khan who, having moved into a one bedroom apartment in Ditchling in June 1998. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative residencies in Ditchling with an extended lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 5 September 2081. Having 57 years left we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Mrs Katherine Brown was assigned a lease of a ground floor apartment in Ditchling in January 2008. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Ditchling with 100 year plus lease were in the region of £245,000. The average ground rent payable was £45 collected monthly. The lease concluded on 15 February 2092. Having 68 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.