Ditchling leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Ditchling tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Ditchling you really ought to see if your lease has between 70 and 90 years left. There are compelling reasons why a Ditchling leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Ditchling with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘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 justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Ditchling leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Adam owned a studio flat in Ditchling being sold with a lease of a few days over 59 years remaining. Adam informally contacted his freeholder being 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 to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. A Alexander moved into a studio flat in Ditchling in August 2003. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in Ditchling with an extended lease were in the region of £203,200. The average amount of ground rent was £65 invoiced quarterly. The lease concluded in 2086. Taking into account 61 years outstanding we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including professional charges.
In 2012 we were phoned by Mr and Mrs. Y Dupont who, having was assigned a lease of a newly refurbished flat in Ditchling in May 2010. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical properties in Ditchling with an extended lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease concluded on 20 August 2096. Considering the 71 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.