Ditchling leases on residential properties are gradually decreasing in 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 ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Ditchling you would be well advised to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Ditchling with over 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Lease extensions in Ditchling can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
In recent months Toby, started to get close to the 80-year threshold with the lease on his first floor apartment in Ditchling. In buying his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Toby was able to extend his lease at the eleventh hour in August. Toby and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the sum would have become more costly by a minimum £1,050.
Last Spring we were e-mailed by Ms H Martínez , who moved into a garden flat in Ditchling in November 1997. The question was if we could estimate the price could be for a ninety year lease extension. Comparative premises in Ditchling with a long lease were valued about £210,600. The average ground rent payable was £45 billed annually. The lease finished in 2083. Taking into account 62 years left we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.
Mr and Mrs. D Cooper purchased a one bedroom flat in Ditchling in October 2007. We are asked if we could estimate the price could be to extend the lease by an additional years. Identical premises in Ditchling with an extended lease were valued about £265,000. The mid-range ground rent payable was £50 collected yearly. The lease came to a finish on 20 August 2094. Taking into account 73 years outstanding we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.