Top reasons for Denton lease extension

Why you should start your Denton lease extension today:

A Denton lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Denton is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed in advance of the eighty year threshold. Current legislation entitles Denton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

Denton property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Banks and Building Societies may not lend with a short lease

Most mortgage lenders have constrained their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be unacceptable security.

Get in touch with one of our Denton lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you enhanced control over the value of your Denton leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Denton Lease Extension Case Summaries:

Ellie, Denton, Greater Manchester,

Subsequent to protracted correspondence with the freeholder of her two bedroom flat in Denton, Ellie started the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction was finalised in November 2012. The landlord’s costs were kept to an absolute minimum.

Denton case:

Mr Owen Hill moved into a ground floor flat in Denton in October 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar homes in Denton with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease ran out on 8 November 2105. Taking into account 79 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.

Denton case:

In 2010 we were approached by Dr B Walker who, having moved into a first floor apartment in Denton in January 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Denton with an extended lease were valued about £193,400. The average ground rent payable was £65 collected quarterly. The lease elapsed in 2085. Considering the 59 years unexpired we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.