The market value of a leasehold property in Dymock depends on how long the lease has left to run. If it is close to or less than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be concluded ahead of the eighty year mark. Leasehold Reform legislation enables Dymock qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Dymock with in excess of 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Dymock,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dymock valuers.
Evan owned a 2 bedroom apartment in Dymock being marketed with a lease of a few days over sixty years left. Evan informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Evan to invoke his statutory right. Evan obtained expert advice and secured an acceptable deal informally and sell the property.
In 2012 we were called by Mr and Mrs. P Hill who, having moved into a garden flat in Dymock in October 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Dymock with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 invoiced annually. The lease finished on 13 July 2079. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.
Last month we were called by Dr Noah Pérez , who bought a ground floor flat in Dymock in March 2003. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Dymock with 100 year plus lease were in the region of £232,800. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2090. Given that there were 65 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.