Denbigh leases on residential properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Denbigh will usually qualify for a lease extension; however a solicitor will check if you qualify. 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.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Denbigh,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Denbigh valuers.
Off the back of lengthy correspondence with the landlord of her first floor apartment in Denbigh, Louise started the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension was concluded in October 2014. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. O Bernard acquired a ground floor flat in Denbigh in October 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative homes in Denbigh with a long lease were valued about £216,000. The average ground rent payable was £60 billed monthly. The lease elapsed on 17 May 2084. Taking into account 58 years as a residual term we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.
In 2013 we were e-mailed by Mr and Mrs. P Díaz who, having acquired a studio apartment in Denbigh in May 2001. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative flats in Denbigh with a long lease were worth £205,000. The average amount of ground rent was £50 collected annually. The lease finished on 7 July 2104. Having 78 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of professional charges.