It’s a harsh truth that a Disley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Disley property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher premium will be payable. Most leasehold owners in Disley will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Santander | |
| TSB |
Retaining our service will provide you increased control over the value of your Disley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ali was the the leasehold proprietor of a conversion flat in Disley on the market with a lease of a few days over 59 years remaining. Ali informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr D Campbell was assigned a lease of a one bedroom flat in Disley in June 1998. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Disley with a long lease were valued about £166,800. The mid-range ground rent payable was £50 collected per annum. The lease lapsed in 2076. Taking into account 50 years left we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of legals.
In 2013 we were called by Mr and Mrs. N Brooks who, having completed a basement flat in Disley in November 1999. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar homes in Disley with 100 year plus lease were valued around £280,000. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 5 August 2096. Given that there were 70 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.