The market value of a leasehold property in Denton depends on how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed in advance of the 80 year mark. Current legislation entitles Denton qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Denton with in excess of 100 years unexpired 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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 |
Lease extensions in Denton can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Denton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year David, started to get near to the eighty-year mark with the lease on his one bedroom flat in Denton. Having purchased his home two decades ago, the lease term was of no interest. Thankfully, he recognised he needed to take action soon on Extending the lease. David arranged for a lease extension just ahead of time last January. David and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had dropped lower than eighty years, the price would have become more exhorbitant by at least £1,100.
In 2013 we were e-mailed by Ms M Nguyen who, having was assigned a lease of a one bedroom apartment in Denton in November 2003. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Denton with a long lease were in the region of £203,200. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 15 November 2087. Given that there were 61 years unexpired we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of expenses.
Mr Hunter Robinson completed a purpose-built flat in Denton in October 2004. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar residencies in Denton with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease expiry date was on 6 February 2098. Given that there were 72 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.