Top reasons for Dunmow lease extension

Why you should start your Dunmow lease extension today:

Increase your lease and increase your Dunmow property value

Dunmow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Dunmow tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Dunmow you really ought to see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value

Dunmow property with a lease extension has roughly the same value as a freehold

Leasehold properties in Dunmow with more than 100 years remaining 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Mortgage lenders will not grant a mortgage with a short lease

The definition of a short lease depends on the specific mortgage company, yet banks and building societies start to get jittery at around 75 years. This may cause difficulties once you come to market or remortgage your flat as it will be practically unmortgageable. Even though you may not have an imminent plan to sell but when you do your buyer will need to wait 2 years before they can exercise the right to a a lease extension.

Get in touch with one of our Dunmow lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Dunmow,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 Dunmow valuers.

Dunmow Lease Extension Case Summaries:

Anna, Dunmow, Essex,

After protracted discussions with the landlord of her leasehold flat in Dunmow, Anna initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in September 2009. The landlord’s fees were restricted to approximately 650 GBP.

Dunmow case:

In 2012 we were phoned by Mrs Megan Davis who, having was assigned a lease of a one bedroom apartment in Dunmow in February 2009. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Dunmow with 100 year plus lease were worth £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease terminated on 7 March 2091. Having 65 years left we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including costs.

Dunmow case:

Last year we were contacted by Dr Paige Rogers , who took over the lease of a ground floor flat in Dunmow in June 2010. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Dunmow with 100 year plus lease were worth £191,400. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish in 2080. Considering the 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including costs.