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 the lease gets more expensive. The majority of owners of residential leasehold property in Ditchling enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Ditchling you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Ditchling leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 get professional help from a lawyer and valuer with experience in this area.
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.
Two years ago Dexter, came critically near to the 80-year mark with the lease on his basement flat in Ditchling. In buying his property 18 years previously, the unexpired term was of little bearing. by good luck, he recognised he needed to take steps soon on a lease extension. Dexter arranged for a lease extension at the eleventh hour in June. Dexter and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,025.
In 2011 we were phoned by Mrs Molly Lee who, having owned a garden flat in Ditchling in April 2003. We are asked if we could approximate the price would be for a ninety year lease extension. Comparative flats in Ditchling with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded on 21 April 2095. Having 69 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Dr Seth Petit completed a garden apartment in Ditchling in April 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar properties in Ditchling with a long lease were worth £290,000. The average ground rent payable was £60 collected yearly. The lease concluded in 2106. Having 80 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.