Unfortunately that a Denton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Denton property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Denton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Denton with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Denton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Denton valuers.
Half a year ago Jacob, started to get near to the eighty-year mark with the lease on his basement flat in Denton. In buying his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Jacob extended the lease just ahead of time in August. Jacob and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had fallen lower than eighty years, the figure would have escalated by at least £975.
Last month we were e-mailed by Mr and Mrs. U Murphy , who was assigned a lease of a ground floor apartment in Denton in October 2007. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical premises in Denton with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed on 28 October 2104. Given that there were 79 years left we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
In 2009 we were contacted by Mr and Mrs. R Gómez who, having moved into a first floor flat in Denton in January 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Denton with a long lease were valued around £193,400. The average ground rent payable was £65 collected yearly. The lease terminated on 27 March 2084. Having 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 plus expenses.