Didsbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Didsbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Didsbury you must check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Didsbury with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Didsbury can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Didsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jasper was the the leasehold proprietor of a 2 bedroom apartment in Didsbury on the market with a lease of fraction over 72 years remaining. Jasper informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jasper to exercise his statutory right. Jasper obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Dr Andrew Turner who, having was assigned a lease of a first floor flat in Didsbury in October 2003. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable flats in Didsbury with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed on 15 February 2074. Taking into account 53 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
In 2014 we were phoned by Mr J Martinez who, having was assigned a lease of a purpose-built apartment in Didsbury in March 2003. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical flats in Didsbury with a long lease were in the region of £290,000. The average ground rent payable was £45 billed per annum. The lease lapsed on 16 July 2094. Having 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.