Dunmow leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Dunmow will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Dunmow with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Dunmow,the lease extension lawyers 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 Dunmow valuers.
In recent months Kyle, started to get close to the 80-year mark with the lease on his studio flat in Dunmow. Having purchased his home twenty years ago, the unexpired term was of minimal concern. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Kyle extended the lease just under the wire in July. Kyle and the freeholder via the managing agents in the end agreed on sum of £5,500 . If the lease had gone lower than 80 years, the premium would have escalated by a minimum £875.
In 2012 we were approached by Dr Louise Simon who, having acquired a ground floor apartment in Dunmow in October 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Dunmow with a long lease were valued about £206,200. The average amount of ground rent was £55 billed annually. The lease elapsed on 18 April 2082. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including professional charges.
In 2011 we were approached by Mr D Morgan who, having completed a garden flat in Dunmow in May 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Dunmow with an extended lease were valued about £300,000. The average ground rent payable was £50 billed yearly. The lease finished in 2102. Considering the 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.