The value of Drybrook leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Drybrook with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Drybrook can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge procuring Drybrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold owner of a 2 bedroom flat in Drybrook being sold with a lease of a few days over 59 years remaining. Liam informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Last Christmas we were called by Mr and Mrs. N Lee , who was assigned a lease of a recently refurbished flat in Drybrook in October 1998. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Drybrook with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced annually. The lease came to a finish on 11 July 2104. Considering the 79 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mr Daniel Fournier was assigned a lease of a ground floor flat in Drybrook in February 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Drybrook with an extended lease were valued about £275,000. The mid-range ground rent payable was £65 billed per annum. The lease expired in 2093. Considering the 68 years unexpired we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.