The only way is down when it comes to Didsbury lease terms. Didsbury leaseholds that have a lease term lower than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will rise.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Didsbury 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 conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a 2 bedroom apartment in Didsbury on the market with a lease of a few days over sixty years remaining. Dylan on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. B Ramírez who, having owned a basement apartment in Didsbury in November 1999. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Didsbury with an extended lease were valued around £250,400. The average ground rent payable was £65 invoiced yearly. The lease ended in 2090. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including costs.
Dr Adam André was assigned a lease of a ground floor flat in Didsbury in April 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Didsbury with a long lease were valued around £189,000. The average amount of ground rent was £55 invoiced annually. The lease came to a finish in 2079. Taking into account 53 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.