Danbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Danbury tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Danbury you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Danbury flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Danbury can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Danbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the freeholder of her ground floor apartment in Danbury, Yasmin initiated the lease extension process as the 80 year mark was rapidly approaching. The lease extension was finalised in February 2013. The freeholder’s fees were kept to an absolute minimum.
Mrs J Morgan owned a garden apartment in Danbury in February 2009. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar homes in Danbury with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired in 2098. Taking into account 72 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Autumn we were approach by Mr and Mrs. B Michel , who was assigned a lease of a first floor apartment in Danbury in October 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Danbury with 100 year plus lease were valued around £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2078. Having 52 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 not including fees.