Denbigh leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Denbigh will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and formalities to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
Leasehold residencies in Denbigh with over one hundred years left on the lease are often 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works |
Using our service will provide you increased control over the value of your Denbigh leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Kian, came perilously near to the eighty-year mark with the lease on his purpose- built flat in Denbigh. Having bought his home 18 years ago, the length of the lease was of minimal significance. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Kian arranged for a lease extension at the eleventh hour last January. Kian and the freeholder ultimately agreed on a premium of £5,500 . If the lease had fallen below eighty years, the premium would have increased by at least £1,150.
Dr W Wilson completed a studio apartment in Denbigh in April 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Denbigh with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed every twelve months. The lease ran out on 20 October 2077. Given that there were 51 years unexpired we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
Dr V Lefèvre took over the lease of a one bedroom apartment in Denbigh in October 1997. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Denbigh with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 billed per annum. The lease terminated on 25 March 2097. Given that there were 71 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.