The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Danbury may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Danbury lease extension. Shelving the costs now simply increases the premium you will eventually have to pay for a lease extension.
Leasehold residencies in Danbury with in excess of one hundred years remaining on the lease are often regarded as a ‘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 freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Danbury can be a difficult process. We recommend you get professional help from a conveyancer and surveyor 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 in-depth market knowledge dealing with Danbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the freeholder of her one bedroom flat in Danbury, Isobel commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was finalised in October 2005. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were contacted by Dr Samuel Miller who, having purchased a newly refurbished apartment in Danbury in August 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Danbury with a long lease were worth £200,800. The average ground rent payable was £65 invoiced yearly. The lease ran out on 10 June 2085. Given that there were 60 years remaining we approximated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus expenses.
Mr James Lewis took over the lease of a studio flat in Danbury in January 1996. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Danbury with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 collected yearly. The lease concluded in 2096. Having 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.