Denton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Denton enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Denton you really ought to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Denton flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Denton with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| The Mortgage Works |
The lawyers that we work with handle 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 lawyer we work with provide it.
Half a year ago Harrison, came dangerously close to the 80-year mark with the lease on his studio flat in Denton. Having bought his home two decades ago, the lease term was of little relevance. As luck would have it, he recognised he would soon be paying an escalated premium for Extending the lease. Harrison extended the lease just under the wire last September. Harrison and the freeholder via the managing agents eventually settled on sum of £5,000 . If the lease had fallen below 80 years, the amount would have increased by at least £900.
Last Christmas we were called by Dr Harrison Patel , who bought a recently refurbished flat in Denton in June 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Denton with an extended lease were valued around £270,000. The average amount of ground rent was £55 collected per annum. The lease concluded on 8 September 2101. Taking into account 75 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Dr Jasper Lee purchased a one bedroom apartment in Denton in November 2012. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical premises in Denton with an extended lease were valued about £168,800. The mid-range amount of ground rent was £60 collected per annum. The lease expired in 2081. Taking into account 55 years remaining we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including professional charges.