Didsbury leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Didsbury will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, 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. |
| 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. |
| 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. |
Lease extensions in Didsbury can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Didsbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Caleb, came precariously close to the eighty-year threshold with the lease on his purpose- built flat in Didsbury. Having purchased his home two decades ago, the unexpired term was of no significance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Caleb was able to extend his lease just under the wire last June. Caleb and the landlord ultimately settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £900.
Ms Megan Jackson took over the lease of a studio flat in Didsbury in October 2002. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical residencies in Didsbury with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish on 10 February 2094. Having 68 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus professional charges.
Last Christmas we were called by Dr Natasha Bell , who moved into a purpose-built flat in Didsbury in October 2011. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar residencies in Didsbury with 100 year plus lease were valued around £213,600. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2083. Taking into account 57 years outstanding we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus fees.