Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Denbigh. Inevitably, the term of lease left reduces as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Denbigh have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Denbigh lease extension. Holding off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Denbigh,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Denbigh valuers.
During the course of the last few months Reuben, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Denbigh. Having bought his home 19 years ago, the unexpired term was of no interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Reuben extended the lease just under the wire last March. Reuben and the freeholder subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,125.
Last Spring we were contacted by Ms B Robinson , who owned a one bedroom apartment in Denbigh in January 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical premises in Denbigh with an extended lease were in the region of £171,800. The average amount of ground rent was £55 collected monthly. The lease concluded on 1 August 2076. Taking into account 50 years remaining we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus expenses.
Last Christmas we were phoned by Dr Chelsea Anderson , who acquired a purpose-built apartment in Denbigh in August 2008. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar flats in Denbigh with an extended lease were worth £280,000. The average ground rent payable was £45 billed every twelve months. The lease expired on 10 October 2096. Considering the 70 years outstanding we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.