When it comes to residential leasehold premises in Denton, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are less than 80 years remaining. Anyone in Denton with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has under 80 years outstanding, under the current statute the landlord can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Denton,the lease extension solicitors that we work with will always be prepared 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.
Subsequent to lengthy correspondence with the freeholder of her two bedroom apartment in Denton, Freya commenced the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was concluded in May 2014. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. O Rose who, having completed a purpose-built apartment in Denton in November 2001. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable premises in Denton with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 21 November 2101. Having 76 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
In 2014 we were approached by Mr Ryan Wilson who, having completed a purpose-built apartment in Denton in November 2003. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Denton with a long lease were in the region of £176,200. The average ground rent payable was £65 collected every twelve months. The lease expired in 2081. Taking into account 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.