There is no doubt about it a leasehold property in Droylsden is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond one hundred years to run then this decrease may be fractional that being said there will become a stage when a lease has under 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 primary logic behind why you should extend the lease without delay. Many flat owners in Droylsden will qualify for this right; that being said a conveyancing solicitor can advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Droylsden can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Droylsden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar was the the leasehold proprietor of a conversion flat in Droylsden being sold with a lease of just over 59 years unexpired. Omar informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mr T Parker bought a recently refurbished flat in Droylsden in June 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Droylsden with an extended lease were in the region of £240,600. The average ground rent payable was £60 billed per annum. The lease terminated on 13 April 2087. Given that there were 62 years outstanding we estimated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
Last February we were approach by Mr and Mrs. O Bernard , who moved into a one bedroom apartment in Droylsden in February 2006. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative flats in Droylsden with a long lease were worth £174,200. The average amount of ground rent was £55 collected every twelve months. The lease ran out in 2076. Taking into account 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.