With a long leasehold property in Denton, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Anyone in Denton with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has fewer than eighty years left, under the relevant legislation the freeholder can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Denton with in excess of 100 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in Denton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Denton valuers.
Trailing lengthy discussions with the landlord of her garden flat in Denton, Emma commenced the lease extension process as the eighty year mark was quickly advancing. The legal work completed in September 2008. The freeholder’s fees were negotiated to below 550 pounds.
In 2012 we were approached by Mr and Mrs. C Roberts who, having completed a studio apartment in Denton in October 2002. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Denton with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 billed yearly. The lease concluded on 26 August 2098. Having 73 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Spring we were called by Mrs A Flores , who took over the lease of a one bedroom apartment in Denton in February 2002. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Similar properties in Denton with a long lease were valued about £264,000. The average amount of ground rent was £60 collected monthly. The lease terminated on 6 March 2078. Given that there were 53 years left we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 not including costs.