Main reasons to commence your Denton lease extension

Top reasons for lease extension now:

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

The re-sale value of a leasehold property in Denton depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year cut off point. Statute entitles Denton qualifying lessees to an additional term of 90 years on top of the existing term, at a peppercorn rent (no ground rent). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.

Denton property with a lease extension has roughly the same value as a freehold

It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.

Lending institutions may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to get nervous at around 75 years. This will cause difficulties once you wish to dispose of or refinance your property as it will be practically unmortgageable. Even though you may not have an imminent desire to sell but when you do your buyer must wait two years before they can exercise the right to a an extension to the lease.

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

Irrespective of whether you are a tenant or a landlord in Denton,the lease extension solicitors that we work with will always be prepared 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.

Denton Lease Extension Example Cases:

Lily, Denton, Greater Manchester,

After lengthy correspondence with the landlord of her basement apartment in Denton, Lily initiated the lease extension process as the 80 year deadline was fast approaching. The transaction was concluded in May 2006. The freeholder’s charges were restricted to a tad over 550 GBP.

Denton case:

Last Summer we were called by Mr V Lewis , who owned a first floor apartment in Denton in July 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable premises in Denton with a long lease were worth £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2082. Given that there were 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.

Denton case:

Last Spring we were phoned by Ms Samantha Robinson , who was assigned a lease of a purpose-built flat in Denton in November 2010. The question was if we could estimate the price could be for a ninety year extension to my lease. Similar premises in Denton with an extended lease were worth £237,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease termination date was in 2093. Considering the 67 years left we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.