Dunmow leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Dunmow will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Dunmow with more than 100 years left on the lease are sometimes referred to as ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dunmow can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 procuring Dunmow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Jackson, started to get close to the 80-year threshold with the lease on his ground floor apartment in Dunmow. Having bought his property two decades ago, the unexpired term was of little importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Jackson was able to extend his lease at the eleventh hour in September. Jackson and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If the lease had slipped below eighty years, the price would have gone up by a minimum £1,100.
Mr and Mrs. P Bell completed a ground floor apartment in Dunmow in January 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Dunmow with an extended lease were valued about £223,400. The average ground rent payable was £60 collected every twelve months. The lease expired on 23 February 2085. Having 59 years outstanding we approximated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.
In 2012 we were approached by Dr T Gunderson who, having completed a basement apartment in Dunmow in September 2009. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical premises in Dunmow with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 13 January 2105. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.