Why you should start your Denbigh lease extension

Top reasons for lease extension now:

A Denbigh lease depreciates with the years remaining on the lease.

On the balance of probabilities if you own a flat in Denbigh you actually own a long leasehold interest over your property

An extended lease is almost the same value as a freehold

Leasehold premises in Denbigh with in excess of one hundred years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to lend with a short lease

Lending institutions have specific criteria when lending monies charged on leasehold property. Many will simply refrain from lending at all once the residual lease term slips lower than a certain unexpired lease term. Many Banks and Building Societies will not regard property with an unexpired below 75 years suitable security. In addition to this being important when selling, it is also relevant where you are seeking to remortgage your Denbigh home.

Get in touch with one of our Denbigh lease extension solicitors or enfranchisement solicitors

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.

Denbigh Lease Extension Case Summaries:

Luca, Denbigh, Denbighshire,

Luca was the the leasehold proprietor of a conversion flat in Denbigh being sold with a lease of a little over 72 years outstanding. Luca informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Luca to invoke his statutory right. Luca obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.

Denbigh case:

Last Spring we were called by Dr V Miller , who owned a purpose-built flat in Denbigh in July 1997. The question was if we could estimate the price would be for a ninety year lease extension. Similar flats in Denbigh with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 billed yearly. The lease came to a finish in 2093. Taking into account 67 years outstanding we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 exclusive of costs.

Denbigh case:

In 2012 we were called by Mr K Adams who, having took over the lease of a ground floor apartment in Denbigh in October 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Denbigh with an extended lease were valued around £206,200. The average ground rent payable was £60 collected quarterly. The lease ran out in 2082. Having 56 years as a residual term we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.