Debenham leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Debenham will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Debenham can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
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 Debenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the freeholder of her two bedroom flat in Debenham, Lydia started the lease extension process as the 80 year mark was fast nearing. The transaction was finalised in July 2012. The landlord’s costs were kept to an absolute minimum.
In 2011 we were phoned by Ms Alisha Kelly who, having moved into a garden flat in Debenham in May 2001. The question was if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Debenham with 100 year plus lease were worth £201,200. The average ground rent payable was £55 billed yearly. The lease ended in 2082. Having 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus professional charges.
Mr and Mrs. C Morel completed a ground floor flat in Debenham in February 2012. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparative properties in Debenham with an extended lease were in the region of £300,000. The average amount of ground rent was £50 billed annually. The lease finished on 7 November 2102. Taking into account 76 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.