Danescourt leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Danescourt residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Danescourt you would be well advised to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Retaining our service will provide you enhanced control over the value of your Danescourt leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alexander was the the leasehold owner of a 2 bedroom apartment in Danescourt on the market with a lease of a little over 59 years unexpired. Alexander informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Alexander to invoke his statutory right. Alexander procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2014 we were contacted by Mr H Sharif who, having bought a recently refurbished flat in Danescourt in January 2000. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Danescourt with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed in 2096. Considering the 70 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
In 2013 we were approached by Dr Oliver Wilson who, having was assigned a lease of a garden flat in Danescourt in September 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar flats in Danescourt with a long lease were worth £223,400. The average amount of ground rent was £60 collected yearly. The lease finished in 2085. Given that there were 59 years as a residual term we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 not including legals.