Danbury leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Danbury will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Danbury,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 Danbury valuers.
In the wake of 6 months of unsuccessful discussions with the landlord of her garden apartment in Danbury, Sian commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in November 2014. The landlord’s charges were restricted to approximately 700 pounds.
In 2012 we were approached by Dr P Harris who, having was assigned a lease of a basement apartment in Danbury in April 2012. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Comparative premises in Danbury with an extended lease were worth £168,800. The mid-range ground rent payable was £60 invoiced yearly. The lease terminated in 2081. Taking into account 55 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.
Last Summer we were called by Mr and Mrs. L Stewart , who moved into a ground floor apartment in Danbury in May 2000. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical homes in Danbury with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2092. Given that there were 66 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.