The market value of a leasehold property in Didsbury is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised ahead of the 80 year threshold. Leasehold Reform legislation enables Didsbury qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 saleable in terms of 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.
Following lengthy discussions with the freeholder of her one bedroom apartment in Didsbury, Amelia started the lease extension process as the 80 year deadline was swiftly approaching. The lease extension was concluded in November 2005. The landlord’s costs were kept to an absolute minimum.
In 2014 we were called by Dr D Bell who, having was assigned a lease of a ground floor apartment in Didsbury in August 1997. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Didsbury with a long lease were valued about £265,200. The average ground rent payable was £65 invoiced quarterly. The lease ran out on 10 January 2091. Having 66 years as a residual term we calculated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of costs.
Last Summer we were approach by Mrs Jodie Watson , who was assigned a lease of a garden flat in Didsbury in June 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Didsbury with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease ended on 3 July 2080. Having 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of costs.