As the the remaining lease term of a Denbigh residential lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Denbigh will meet the qualifying criteria; nevertheless a conveyancer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Denbigh with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Denbigh,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Denbigh valuers.
Hugo owned a high value apartment in Denbigh being marketed with a lease of a few days over sixty years unexpired. Hugo informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2012 we were called by Dr Ellen Laurent who, having purchased a basement apartment in Denbigh in November 2012. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar residencies in Denbigh with 100 year plus lease were in the region of £223,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease expired in 2084. Given that there were 59 years left we estimated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus expenses.
In 2014 we were phoned by Mr and Mrs. Y Roux who, having bought a first floor apartment in Denbigh in April 2005. The question was if we could approximate the premium would be to prolong the lease by ninety years. Similar properties in Denbigh with a long lease were valued about £205,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2104. Having 79 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.