When it comes to long leasehold property in Denbigh, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Residents in Denbigh with a lease drawing near to 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Denbigh with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Denbigh leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Kyle, came precariously near to the 80-year threshold with the lease on his ground floor flat in Denbigh. In buying his property two decades ago, the unexpired term was of minimal importance. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Kyle arranged for a lease extension just in the nick of time last May. Kyle and the landlord ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £975.
In 2011 we were approached by Mr and Mrs. K Thompson who, having owned a ground floor flat in Denbigh in May 2008. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative residencies in Denbigh with 100 year plus lease were worth £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease expired in 2092. Having 66 years outstanding we calculated the premium to the landlord for the lease extension to be between £15,200 and £17,600 not including fees.
In 2010 we were e-mailed by Dr U Martinez who, having completed a basement flat in Denbigh in February 2012. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in Denbigh with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced per annum. The lease came to a finish in 2081. Given that there were 55 years left we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus legals.