The only way is down when it comes to Ditchling lease terms. Ditchling leaseholds that have a remaining term less than than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in Ditchling with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Ditchling can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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.
Subsequent to protracted correspondence with the freeholder of her basement flat in Ditchling, Kirsty commenced the lease extension process as the 80 year mark was fast approaching. The transaction completed in July 2014. The freeholder’s costs were negotiated to slightly above 450 pounds.
Mr and Mrs. C Johnson purchased a first floor apartment in Ditchling in October 2009. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar residencies in Ditchling with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced per annum. The lease termination date was in 2076. Having 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of costs.
Last Spring we were called by Mrs L Sharif , who acquired a newly refurbished flat in Ditchling in August 2011. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Ditchling with 100 year plus lease were in the region of £215,600. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 9 July 2087. Considering the 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.