When it comes to residential leasehold premises in Denton, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years remaining. Anyone in Denton with a lease approaching 81 years left should seriously consider extending it sooner rather than later. Once the lease term has below eighty years remaining, under the relevant legislation the landlord is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Denton with over 100 years remaining 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Denton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last year Eliot, started to get near to the 80-year mark with the lease on his two bedroom flat in Denton. In buying his property two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he would imminently be paying an escalated premium for a lease extension. Eliot was able to extend his lease at the eleventh hour last September. Eliot and the freeholder eventually agreed on a premium of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by a minimum £1,100.
In 2013 we were phoned by Mr and Mrs. H Adams who, having moved into a first floor apartment in Denton in January 1996. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative residencies in Denton with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2091. Considering the 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.
In 2014 we were e-mailed by Mrs C David who, having completed a one bedroom apartment in Denton in July 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical properties in Denton with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 invoiced per annum. The lease termination date was on 26 January 2102. Given that there were 77 years remaining we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.