Top reasons for Denbigh lease extension

Top reasons for lease extension now:

Increase your lease and increase your Denbigh property value

For those whose Denbigh home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Denbigh with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.

Lenders may not finance a property on a short lease

The trend since 2008 has been for banks to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past mortgage companies were content with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Why use us for your lease extension in Denbigh?

Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Denbigh valuers.

Denbigh Lease Extension Case Summaries:

Matthew, Denbigh, Denbighshire

During the course of the last few months Matthew, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Denbigh. Having purchased his flat 18 years ago, the lease term was of no bearing. Luckily, he realised he would imminently be paying way over the odds for a lease extension. Matthew was able to extend his lease at the eleventh hour in July. Matthew and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £950.

Denbigh case:

Last February we were called by Mr and Mrs. I Thompson , who owned a one bedroom flat in Denbigh in October 2009. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Denbigh with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 billed annually. The lease ran out in 2081. Considering the 55 years left we estimated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.

Denbigh case:

In 2009 we were phoned by Dr Danielle Lee who, having owned a basement flat in Denbigh in October 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable residencies in Denbigh with a long lease were valued about £300,000. The average amount of ground rent was £50 billed annually. The lease termination date was on 16 January 2101. Considering the 75 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.