Didsbury leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Didsbury tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Didsbury you really ought to investigate if your lease has between 70 and 90 years left. There are good reasons why a Didsbury flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Didsbury with in excess of 100 years left 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Luke was the the leasehold proprietor of a high value flat in Didsbury being marketed with a lease of a little over fifty eight years unexpired. Luke informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. W Phillips who, having took over the lease of a one bedroom flat in Didsbury in March 1996. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative premises in Didsbury with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ended in 2105. Having 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.
Last month we were e-mailed by Mrs G Sánchez , who moved into a studio apartment in Didsbury in July 2003. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable premises in Didsbury with an extended lease were valued about £275,000. The average amount of ground rent was £65 invoiced annually. The lease finished in 2094. Considering the 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.