Dunstable 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 becomes more expensive. Legislation has been in place for sometime now which permits qualifying Dunstable residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dunstable you should check if your lease has between seventy and ninety years left. There are compelling reasons why a Dunstable leaseholder with a lease having around 80 years left should take action to make sure that a lease extension is actioned without delay
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
Lender | Requirement |
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Accord Mortgages | 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. |
Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
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 Dunstable can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience procuring Dunstable lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her one bedroom flat in Dunstable, Ellie initiated the lease extension process as the 80 year deadline was quickly advancing. The transaction was finalised in January 2006. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Dr Alice Taylor , who moved into a ground floor flat in Dunstable in September 2010. The dilemma was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Dunstable with a long lease were valued about £171,800. The average amount of ground rent was £55 collected yearly. The lease terminated in 2074. Having 50 years left we approximated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus expenses.
Mr and Mrs. N Martínez completed a one bedroom flat in Dunstable in April 1997. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Similar premises in Dunstable with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out in 2094. Having 70 years remaining we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.