With a long leasehold property in Denmark Hill, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Leasehold owners in Denmark Hill with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant Act the landlord is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Denmark Hill with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Denmark Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Charlie, came critically near to the 80-year threshold with the lease on his studio flat in Denmark Hill. Having bought his home two decades ago, the length of the lease was of little bearing. Luckily, he realised he would soon be paying way over the odds for a lease extension. Charlie arranged for a lease extension just in the nick of time in March. Charlie and the landlord ultimately settled on sum of £5,500 . If he failed to meet the deadline, the amount would have increased by a minimum £875.
In 2014 we were approached by Mrs F Morris who, having was assigned a lease of a first floor apartment in Denmark Hill in August 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical residencies in Denmark Hill with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced quarterly. The lease concluded on 18 February 2101. Having 75 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement case for a Denmark Hill premises is 66 Southwell Road in March 2012. By Order of Deputy District Judge Stone dated 25 January 2012 a vesting order was made. The determination of the purchase price was referred to the Tribunal who decided that the amount payable for the freehold should be£29,612.00 This case related to 3 flats. The number of years remaining on the existing lease(s) was 72.58 years.