When it comes to long leasehold premises in Danbury, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than 80 years remaining. Leasehold owners in Danbury with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has below eighty years outstanding, under the relevant Act the landlord can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with handle 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 conveyancer we work with provide it.
In 2014 Kai, came dangerously close to the 80-year mark with the lease on his garden apartment in Danbury. In buying his home two decades ago, the lease term was of no significance. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Kai extended the lease just ahead of time in January. Kai and the landlord eventually settled on the final figure of £5,500 . If the lease had gone below 80 years, the premium would have escalated by a minimum £1,050.
In 2009 we were called by Ms Grace Davies who, having bought a recently refurbished flat in Danbury in March 2008. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparative premises in Danbury with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 billed every twelve months. The lease terminated on 24 May 2105. Taking into account 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus costs.
Last Winter we were called by Dr Eliot Ward , who owned a garden flat in Danbury in March 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable properties in Danbury with 100 year plus lease were valued around £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed in 2085. Having 59 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus legals.