Droylsden leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Droylsden will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Droylsden with in excess of 100 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Droylsden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Droylsden valuers.
Leon was the the leasehold owner of a studio apartment in Droylsden being marketed with a lease of a little over 59 years unexpired. Leon informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Leon to invoke his statutory right. Leon procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were approach by Mr and Mrs. I Lambert , who completed a ground floor flat in Droylsden in March 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar properties in Droylsden with a long lease were worth £206,200. The mid-range amount of ground rent was £55 billed yearly. The lease finished on 2 June 2081. Given that there were 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
In 2012 we were called by Ms Kate Miller who, having owned a studio apartment in Droylsden in July 2006. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar flats in Droylsden with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2101. Having 76 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.