For anyone whose Droylsden flat is held on a long lease, the message is clear – if no remedial action is taken, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Droylsden,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Droylsden valuers.
In 2014 Rory, started to get close to the eighty-year threshold with the lease on his garden flat in Droylsden. In buying his flat two decades ago, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Rory was able to extend his lease just under the wire in June. Rory and the freeholder via the managing agents eventually agreed on sum of £5,000 . If he failed to meet the deadline, the price would have increased by at least £850.
Ms E Bernard purchased a one bedroom apartment in Droylsden in March 2010. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Droylsden with an extended lease were valued around £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease expiry date was on 6 April 2093. Given that there were 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of costs.
Mr Reuben Peterson took over the lease of a one bedroom apartment in Droylsden in February 2000. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Droylsden with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 14 August 2082. Considering the 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of fees.