With a long leasehold premises in Dunstable, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Dunstable with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years left, under the relevant legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you enhanced control over the value of your Dunstable leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her first floor flat in Dunstable, Alexandra initiated the lease extension process just as the lease was coming close to the crucial 80-year mark. The legal work completed in April 2014. The landlord’s charges were restricted to a tad over 550 pounds.
Mr and Mrs. L Petit purchased a ground floor flat in Dunstable in May 2010. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable residencies in Dunstable with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 invoiced annually. The lease finished on 24 May 2090. Having 65 years left we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Mrs Chloe Dupont was assigned a lease of a newly refurbished apartment in Dunstable in May 1997. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Dunstable with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 collected annually. The lease expiry date was in 2079. Given that there were 54 years outstanding we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 plus costs.