The only way is down when it comes to Denton lease terms. Denton properties that have a residual term less than than eighty years will de-escalate in market price even faster, and the cost of extending your lease will rise.
Leasehold properties in Denton with over one hundred 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 maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Denton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Denton valuers.
After unsuccessful negotiations with the landlord of her first floor apartment in Denton, Anna commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction was finalised in June 2013. The landlord’s fees were negotiated to approximately five hundred pounds.
In 2013 we were called by Dr B Evans who, having completed a purpose-built flat in Denton in January 2004. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical premises in Denton with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease termination date was on 22 April 2089. Taking into account 63 years remaining we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including costs.
In 2014 we were contacted by Dr Thomas Vincent who, having bought a ground floor flat in Denton in August 1996. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Similar flats in Denton with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 22 October 2100. Considering the 74 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.