It’s an underpublicised certainty that a Droylsden residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Droylsden property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Droylsden will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Droylsden with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Lease extensions in Droylsden can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Droylsden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Oscar, started to get near to the eighty-year mark with the lease on his leasehold apartment in Droylsden. In buying his flat 19 years previously, the unexpired term was of minimal significance. Fortunately, it dawned on him that he would imminently be paying way over the odds for a lease extension. Oscar arranged for a lease extension at the eleventh hour last July. Oscar and the freeholder in the end settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have increased by at least £1,075.
Last Winter we were approach by Ms L López , who bought a ground floor apartment in Droylsden in September 1999. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical properties in Droylsden with an extended lease were worth £223,400. The average amount of ground rent was £60 billed annually. The lease elapsed on 18 May 2084. Considering the 59 years outstanding we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 not including professional charges.
Dr Laura Mason owned a garden apartment in Droylsden in January 2007. The question was if we could estimate the premium would be to extend the lease by an additional years. Identical homes in Droylsden with an extended lease were valued around £205,000. The average amount of ground rent was £50 billed yearly. The lease ran out on 20 May 2104. Given that there were 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.