Denbigh leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Denbigh residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Denbigh you really ought to investigate if your lease has between seventy and 90 years left. There are good reasons why a Denbigh leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Following unsuccessful correspondence with the landlord of her studio flat in Denbigh, Victoria initiated the lease extension process as the 80 year mark was quickly coming. The lease extension was concluded in October 2015. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Ms I Wilson who, having was assigned a lease of a one bedroom apartment in Denbigh in July 2010. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical properties in Denbigh with a long lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease end date was on 17 June 2101. Considering the 76 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2011 we were contacted by Mrs Imogen Rogers who, having was assigned a lease of a studio flat in Denbigh in September 1997. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Denbigh with a long lease were worth £257,800. The average amount of ground rent was £65 collected yearly. The lease concluded on 5 February 2090. Having 65 years left we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.