Denton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Denton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Denton you must check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Denton leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Denton,the lease extension experts 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.
Harrison was the the leasehold proprietor of a conversion flat in Denton being marketed with a lease of a little over 72 years remaining. Harrison informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2014 we were approached by Mrs D Bell who, having moved into a garden apartment in Denton in March 2009. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Denton with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease expired on 1 September 2081. Taking into account 56 years outstanding we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.
Mr K Baker acquired a ground floor apartment in Denton in February 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical homes in Denton with an extended lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced quarterly. The lease lapsed on 7 May 2092. Given that there were 67 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of costs.