As the length of the unexpired term of a Ditchling residential lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Most flat owners in Ditchling will qualify for this right; nevertheless a conveyancer can advise whether 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 less than two years.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| 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 secure guidance from a lawyer 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 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.
Trailing lengthy negotiations with the landlord of her purpose-built flat in Ditchling, Jasmine initiated the lease extension process as the 80 year deadline was quickly nearing. The transaction was finalised in March 2007. The landlord’s charges were restricted to under 600 pounds.
Dr D Kelly completed a ground floor apartment in Ditchling in October 2003. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable residencies in Ditchling with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed yearly. The lease concluded in 2086. Considering the 60 years as a residual term we calculated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of costs.
Last Summer we were phoned by Mr Samuel Roux , who moved into a ground floor apartment in Ditchling in July 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable flats in Ditchling with an extended lease were in the region of £260,000. The average amount of ground rent was £50 collected annually. The lease concluded in 2097. Taking into account 71 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.