Diss leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher amount will be payable. Flat owners in Diss will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Diss,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Diss valuers.
After lengthy negotiations with the freeholder of her first floor apartment in Diss, Tia initiated the lease extension process as the eighty year deadline was quickly nearing. The lease extension was finalised in February 2015. The landlord’s charges were restricted to below 550 pounds.
In 2009 we were approached by Dr K Sharif who, having bought a one bedroom apartment in Diss in November 2007. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Similar residencies in Diss with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease expired on 28 November 2076. Considering the 50 years outstanding we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including fees.
Last Christmas we were phoned by Dr F Miller , who completed a ground floor apartment in Diss in March 2001. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Diss with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 collected yearly. The lease elapsed on 20 November 2087. Given that there were 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.