When it comes to residential leasehold property in Disley, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Disley with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has below eighty years outstanding, under the relevant Act the landlord can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service gives you increased control over the value of your Disley leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Aarav, came perilously near to the eighty-year threshold with the lease on his studio apartment in Disley. In buying his flat two decades ago, the length of the lease was of minimal importance. by good luck, he realised he would soon be paying way over the odds for a lease extension. Aarav arranged for a lease extension at the eleventh hour last May. Aarav and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the sum would have increased by at least £875.
Last September we were phoned by Mr and Mrs. T Roberts , who bought a studio apartment in Disley in March 2011. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar homes in Disley with a long lease were valued about £174,200. The average amount of ground rent was £55 billed per annum. The lease lapsed in 2075. Having 51 years left we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
Mr and Mrs. K Reed purchased a first floor apartment in Disley in September 2000. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical properties in Disley with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed monthly. The lease concluded in 2095. Taking into account 71 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.