Denton leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Denton will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Denton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Denton, Georgina started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in November 2015. The freeholder’s fees were kept to an absolute minimum.
Last June we were contacted by Mrs R Norbert , who bought a first floor flat in Denton in July 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable premises in Denton with an extended lease were valued about £218,000. The average ground rent payable was £45 billed every twelve months. The lease concluded in 2088. Given that there were 63 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of professional charges.
Last Christmas we were contacted by Mrs N Jackson , who bought a basement apartment in Denton in September 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative residencies in Denton with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 10 September 2099. Taking into account 74 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.