The market value of a leasehold property in Danbury is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised in advance of the eighty year cut off point. Statute entitles Danbury qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Danbury with over 100 years remaining 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancers that we work with procure Danbury 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her garden flat in Danbury, Isabel started the lease extension process as the eighty year mark was rapidly coming. The lease extension was concluded in September 2015. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were called by Mr F Leroy , who took over the lease of a first floor apartment in Danbury in October 2008. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative residencies in Danbury with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced annually. The lease concluded in 2086. Considering the 60 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 not including fees.
Last June we were called by Mr T Carter , who owned a first floor apartment in Danbury in June 2011. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Identical residencies in Danbury with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ran out on 26 January 2097. Taking into account 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.