Deanshanger leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Deanshanger will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Using our service will provide you better 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 want 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 Harrison, came very near to the eighty-year mark with the lease on his garden apartment in Deanshanger. In buying his property 19 years previously, the unexpired term was of little importance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Harrison was able to extend his lease just in the nick of time in April. Harrison and the landlord in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,125.
In 2014 we were called by Mrs N Ramírez who, having moved into a basement flat in Deanshanger in June 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparable properties in Deanshanger with 100 year plus lease were valued around £183,600. The average ground rent payable was £65 billed annually. The lease ended on 4 July 2082. Taking into account 57 years outstanding we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Last year we were called by Mr and Mrs. D Torres , who took over the lease of a studio apartment in Deanshanger in February 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Deanshanger with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish in 2093. Given that there were 68 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.