The re-sale value of a leasehold property in Deanshanger depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed well before the eighty year threshold. Current legislation enables Deanshanger qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service gives you enhanced control over the value of your Deanshanger leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Toby owned a studio apartment in Deanshanger being marketed with a lease of fraction over fifty eight years left. Toby on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Dr B Rose owned a purpose-built apartment in Deanshanger in March 1996. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar properties in Deanshanger with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded on 23 February 2086. Considering the 60 years remaining we approximated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of legals.
Mr and Mrs. P Miller was assigned a lease of a garden apartment in Deanshanger in January 2012. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Deanshanger with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 billed yearly. The lease expired in 2097. Considering the 71 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.