The value of Droylsden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Droylsden can be a difficult process. We recommend you get guidance from a lawyer 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 dealing with Droylsden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Andrew, came precariously near to the eighty-year threshold with the lease on his leasehold apartment in Droylsden. Having purchased his flat twenty years previously, the lease term was of no interest. Luckily, he noticed he needed to take steps soon on a lease extension. Andrew arranged for a lease extension at the eleventh hour in May. Andrew and the freeholder in the end settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £900.
Mr Y Mitchell moved into a purpose-built flat in Droylsden in October 2008. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Similar flats in Droylsden with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 23 January 2078. Considering the 52 years unexpired we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
In 2010 we were phoned by Mr and Mrs. N Watson who, having owned a purpose-built flat in Droylsden in May 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Droylsden with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed every twelve months. The lease ended in 2098. Taking into account 72 years outstanding we calculated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus fees.