Denton residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Denton with in excess of one hundred years left on the lease are sometimes referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Denton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Denton valuers.
After protracted discussions with the landlord of her two bedroom flat in Denton, Madeleine started the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in August 2007. The freeholder’s costs were restricted to a tad over 600 pounds.
Mr and Mrs. T André bought a recently refurbished flat in Denton in August 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Denton with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease termination date was in 2098. Given that there were 72 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
In 2011 we were approached by Ms G Richardson who, having purchased a basement flat in Denton in June 1995. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparative properties in Denton with 100 year plus lease were valued around £256,600. The average amount of ground rent was £60 collected quarterly. The lease finished on 21 November 2078. Having 52 years outstanding we estimated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 not including expenses.