As the the remaining lease term of a Ditchling domestic lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Ditchling will qualify for this right; however a lawyer 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 not been the owner of the property for two years.
Leasehold properties in Ditchling with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Ditchling,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ditchling valuers.
After protracted discussions with the landlord of her leasehold apartment in Ditchling, Daisy started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The legal work completed in July 2005. The landlord’s fees were restricted to less than 550 GBP.
Mr and Mrs. I Edwards was assigned a lease of a one bedroom flat in Ditchling in August 2009. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable flats in Ditchling with 100 year plus lease were in the region of £173,800. The average ground rent payable was £65 invoiced per annum. The lease lapsed in 2080. Given that there were 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Last Spring we were e-mailed by Mr and Mrs. B Díaz , who bought a one bedroom apartment in Ditchling in October 1999. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical homes in Ditchling with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 3 September 2091. Given that there were 66 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.