It’s a harsh certainty that a Deanshanger residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Deanshanger property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Deanshanger will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Halifax | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
Using our service gives you increased control over the value of your Deanshanger leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Matthew, came seriously close to the 80-year mark with the lease on his leasehold flat in Deanshanger. In buying his home two decades ago, the unexpired term was of no relevance. Luckily, he noticed he needed to take action soon on a lease extension. Matthew extended the lease at the eleventh hour in March. Matthew and the landlord ultimately agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the amount would have increased by at least £850.
Mrs Eleanor Dupont bought a ground floor apartment in Deanshanger in July 2009. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative residencies in Deanshanger with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease lapsed on 1 November 2088. Considering the 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.
In 2014 we were phoned by Mrs Kelsey King who, having purchased a studio flat in Deanshanger in March 2005. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Deanshanger with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced annually. The lease ended on 13 October 2099. Taking into account 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.