Didsbury residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Didsbury with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Didsbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Didsbury valuers.
In the wake of eight months of protracted correspondence with the freeholder of her first floor apartment in Didsbury, Rhiannon started the lease extension process just as her lease was nearing the all-important eighty-year mark. The lease extension was finalised in November 2015. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Ms Natalie Roberts who, having bought a ground floor apartment in Didsbury in September 2006. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Similar homes in Didsbury with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 invoiced per annum. The lease expired on 21 October 2080. Given that there were 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of legals.
Last month we were contacted by Mr and Mrs. M Richardson , who was assigned a lease of a newly refurbished apartment in Didsbury in February 2003. The dilemma was if we could approximate the premium could be to prolong the lease by 90 years. Similar residencies in Didsbury with an extended lease were in the region of £295,000. The average ground rent payable was £45 billed monthly. The lease ran out on 16 August 2101. Taking into account 75 years remaining we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.