Denbigh leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Denbigh residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Denbigh you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Denbigh flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Denbigh with more than one hundred years outstanding on the lease are sometimes referred to as ‘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 to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| 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 Denbigh can be a difficult process. We recommend you obtain 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 Denbigh lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the freeholder of her first floor flat in Denbigh, Caitlin initiated the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was finalised in September 2014. The landlord’s charges were negotiated to about 550 pounds.
In 2013 we were e-mailed by Mr and Mrs. J Allen who, having owned a ground floor flat in Denbigh in July 2003. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable flats in Denbigh with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 billed every twelve months. The lease concluded in 2080. Having 54 years remaining we approximated the compensation to the freeholder for the lease extension to be between £35,200 and £40,600 plus fees.
Last September we were contacted by Mr and Mrs. K Davies , who was assigned a lease of a newly refurbished apartment in Denbigh in May 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable homes in Denbigh with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 invoiced yearly. The lease finished on 5 September 2100. Having 74 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.