It’s a harsh certainty that a Droylsden residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Droylsden property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops under 80 years, you will then be required to pay half of the property's 'marriage value' on top of 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 Droylsden will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Droylsden with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Droylsden can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge 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.
Off the back of unsuccessful correspondence with the freeholder of her two bedroom apartment in Droylsden, Sarah commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension completed in February 2009. The landlord’s fees were restricted to below 600 GBP.
In 2009 we were e-mailed by Ms K Khan who, having took over the lease of a basement apartment in Droylsden in June 2001. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar residencies in Droylsden with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was in 2083. Considering the 58 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
In 2011 we were approached by Mr W Bertrand who, having completed a basement flat in Droylsden in March 2001. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Droylsden with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease came to a finish in 2103. Considering the 78 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.