Dunmow leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then have to pay 50% 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 to the property. Leasehold owners in Dunmow will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Dunmow with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| 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. |
Lease extensions in Dunmow can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 Dunmow 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 negotiations with the landlord of her ground floor flat in Dunmow, Hannah commenced the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in February 2009. The landlord’s costs were restricted to about 450 GBP.
Mr and Mrs. I Baker bought a purpose-built apartment in Dunmow in October 1999. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative properties in Dunmow with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 invoiced annually. The lease lapsed in 2094. Taking into account 69 years remaining we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
Last August we were e-mailed by Mrs M Turner , who bought a ground floor apartment in Dunmow in April 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative premises in Dunmow with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed annually. The lease concluded in 2083. Taking into account 58 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.