The re-sale value of a leasehold property in Droylsden depends on how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be finalised ahead of the 80 year cut off point. Current legislation entitles Droylsden qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over 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 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| 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 get 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 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.
Half a year ago Eliot, came critically near to the eighty-year threshold with the lease on his studio flat in Droylsden. In buying his home twenty years ago, the lease term was of little interest. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Eliot extended the lease just in the nick of time in July. Eliot and the landlord in the end settled on the final figure of £5,500 . If the lease had slipped to less than 80 years, the amount would have gone up by a minimum £925.
Mr and Mrs. B Lambert bought a one bedroom flat in Droylsden in February 2002. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar residencies in Droylsden with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed yearly. The lease end date was on 8 February 2090. Considering the 64 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
Last year we were called by Dr Arthur Gunderson , who was assigned a lease of a basement apartment in Droylsden in February 2001. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in Droylsden with an extended lease were worth £189,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 4 September 2079. Having 53 years left we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.