Dunmow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Dunmow residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dunmow you really ought to investigate if your lease has between seventy and ninety years left. There are good reasons why a Dunmow flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Dunmow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Winter George, came dangerously near to the 80-year mark with the lease on his ground floor flat in Dunmow. In buying his flat two decades ago, the lease term was of minimal concern. by good luck, he became aware that he would soon be paying way over the odds for Extending the lease. George arranged for a lease extension just ahead of time in September. George and the freeholder eventually settled on the final figure of £5,000 . If the lease had fallen lower than 80 years, the premium would have escalated by a minimum £850.
Mr and Mrs. Y Morris moved into a studio flat in Dunmow in July 2009. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative homes in Dunmow with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed monthly. The lease came to a finish in 2101. Considering the 77 years remaining we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Last Winter we were e-mailed by Mrs K Clark , who moved into a basement apartment in Dunmow in June 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in Dunmow with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded on 28 March 2090. Considering the 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.