Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Deanshanger. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Deanshanger have the right to extend the lease for a further ninety years in accordance with legislation. You should give due attention before delaying your Deanshanger lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in Deanshanger with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Deanshanger can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Deanshanger lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jonathan owned a 2 bedroom flat in Deanshanger being marketed with a lease of just over 59 years remaining. Jonathan informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Last Winter we were e-mailed by Mrs Molly Moore , who completed a purpose-built apartment in Deanshanger in November 2005. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Deanshanger with an extended lease were worth £242,600. The average amount of ground rent was £45 collected yearly. The lease elapsed on 8 November 2093. Having 67 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 not including fees.
Last Spring we were called by Mrs Melissa Peterson , who took over the lease of a garden flat in Deanshanger in September 1999. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable residencies in Deanshanger with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 collected per annum. The lease ended in 2104. Given that there were 78 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.