Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Dymock. Inevitably, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Dymock have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Dymock lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Dymock 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 conveyancing solicitor we work with provide it.
Harvey owned a high value apartment in Dymock being sold with a lease of just over 61 years unexpired. Harvey on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Mr V Sharif was assigned a lease of a purpose-built flat in Dymock in September 2004. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical properties in Dymock with an extended lease were worth £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease finished on 5 February 2076. Considering the 50 years left we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus costs.
Ms Zoe Richardson was assigned a lease of a garden apartment in Dymock in March 1995. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative flats in Dymock with an extended lease were worth £208,200. The average ground rent payable was £65 billed annually. The lease expired in 2087. Considering the 61 years unexpired we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of legals.