The only way is down when it comes to Didsbury lease terms. Didsbury properties that have a lease term fewer than eighty years will drop in market price even faster, and the cost of extending your lease will rise.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Didsbury leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar owned a conversion flat in Didsbury on the market with a lease of a few days over 59 years left. Omar informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mrs Sarah Khan took over the lease of a newly refurbished apartment in Didsbury in February 1999. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in Didsbury with 100 year plus lease were worth £181,600. The average ground rent payable was £55 billed annually. The lease came to a finish on 13 November 2078. Given that there were 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of fees.
Mr H David owned a purpose-built flat in Didsbury in March 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Didsbury with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 collected yearly. The lease came to a finish on 28 January 2098. Having 72 years unexpired we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.