Unfortunately that a Ditchling residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Ditchling property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Ditchling will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Ditchling lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ben was the the leasehold proprietor of a high value flat in Ditchling on the market with a lease of a little over 72 years unexpired. Ben informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben obtained expert advice and secured an acceptable deal informally and sell the property.
In 2010 we were called by Dr Felix Cook who, having was assigned a lease of a studio flat in Ditchling in January 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Ditchling with 100 year plus lease were valued about £176,200. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2082. Considering the 56 years remaining we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus expenses.
In 2012 we were e-mailed by Dr Emily Bertrand who, having moved into a ground floor flat in Ditchling in January 2002. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical residencies in Ditchling with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease ended in 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 plus fees.