It’s an underpublicised truth that a Diss residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Diss 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 dips below eighty years - otherwise a higher amount will be due. Most flat owners in Diss will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold premises in Diss with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Yorkshire 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. |
Lease extensions in Diss can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 Diss lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the freeholder of her two bedroom apartment in Diss, Danielle initiated the lease extension process as the 80 year deadline was fast advancing. The transaction was concluded in July 2005. The freeholder’s costs were negotiated to a tad over 550 GBP.
In 2013 we were e-mailed by Mr K Wilson who, having was assigned a lease of a basement apartment in Diss in October 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Diss with 100 year plus lease were valued about £225,400. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2089. Taking into account 64 years remaining we calculated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus expenses.
In 2009 we were called by Mrs Paige Brooks who, having purchased a first floor apartment in Diss in May 2012. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Identical premises in Diss with an extended lease were worth £270,000. The average ground rent payable was £55 invoiced annually. The lease finished on 23 January 2100. Given that there were 75 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.