There is no doubt about it a leasehold property in Ditchling is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Ditchling will meet the qualifying criteria; that being said a conveyancer will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Ditchling,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ditchling valuers.
Trailing protracted negotiations with the freeholder of her two bedroom flat in Ditchling, Jessica started the lease extension process as the eighty year deadline was quickly nearing. The transaction was finalised in October 2012. The freeholder’s costs were negotiated to about 600 pounds.
In 2010 we were called by Mr and Mrs. E López who, having purchased a recently refurbished apartment in Ditchling in November 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Ditchling with 100 year plus lease were in the region of £208,200. The average amount of ground rent was £65 billed per annum. The lease ran out in 2087. Considering the 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.
Last Winter we were approach by Dr N Lefebvre , who completed a recently refurbished flat in Ditchling in November 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Ditchling with a long lease were valued around £260,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2098. Given that there were 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.