For those whose Didsbury property is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Didsbury can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Trailing unsuccessful negotiations with the landlord of her first floor flat in Didsbury, Niamh started the lease extension process as the eighty year threshold was rapidly nearing. The legal work was finalised in January 2006. The landlord’s costs were restricted to slightly above 700 GBP.
Last Winter we were contacted by Dr Y Flores , who acquired a garden flat in Didsbury in August 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative homes in Didsbury with 100 year plus lease were valued about £300,000. The average ground rent payable was £50 invoiced monthly. The lease elapsed in 2102. Taking into account 76 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.
Mr and Mrs. R Walker took over the lease of a garden flat in Didsbury in June 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Didsbury with an extended lease were valued around £257,800. The mid-range amount of ground rent was £65 collected annually. The lease ended in 2091. Taking into account 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including fees.