The only way is down when it comes to Didsbury lease terms. Didsbury flats that have a residual term lower than 80 years will drop in value at a rapid rate, and the cost to extend your lease will rise.
Leasehold premises in Didsbury with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Using our service will provide you better control over the value of your Didsbury leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold proprietor of a high value flat in Didsbury being sold with a lease of fraction over 61 years left. Kian on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. I Martinez completed a recently refurbished apartment in Didsbury in September 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Didsbury with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected annually. The lease came to a finish on 9 November 2076. Having 50 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including fees.
Last Spring we were called by Ms H Bertrand , who completed a purpose-built flat in Didsbury in January 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Didsbury with a long lease were worth £280,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2097. Taking into account 71 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.