With a long leasehold premises in Ditchling, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years remaining. Anyone in Ditchling with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years left, under the current Act the freeholder can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Ditchling with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 Ditchling can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Ditchling lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a studio flat in Ditchling on the market with a lease of fraction over fifty eight years unexpired. Ethan informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Ethan to invoke his statutory right. Ethan obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last June we were e-mailed by Dr C Nguyen , who took over the lease of a garden apartment in Ditchling in August 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical flats in Ditchling with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 9 February 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Last Christmas we were phoned by Dr N Bell , who completed a newly refurbished apartment in Ditchling in August 2012. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Ditchling with 100 year plus lease were worth £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease lapsed in 2079. Having 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including fees.