Droylsden leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Droylsden enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Droylsden you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty 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
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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 |
| 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 conveyancing solicitors that we work with procure Droylsden 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.
Adam was the the leasehold proprietor of a conversion apartment in Droylsden on the market with a lease of just over fifty eight years unexpired. Adam informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last year we were approach by Mrs Zoe Khan , who completed a ground floor flat in Droylsden in August 2008. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical premises in Droylsden with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 billed annually. The lease elapsed on 4 September 2098. Given that there were 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
Last Autumn we were phoned by Dr Kyle Adams , who acquired a garden apartment in Droylsden in October 1998. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparable residencies in Droylsden with 100 year plus lease were valued about £240,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease concluded on 5 April 2087. Given that there were 62 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus costs.