The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Dymock have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Dymock lease extension. Shelving the costs now simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold residencies in Dymock with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord 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.
Owen was the the leasehold owner of a conversion apartment in Dymock being sold with a lease of a little over fifty eight years left. Owen informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Last Winter we were approach by Dr Katie Lewis , who owned a one bedroom apartment in Dymock in June 2009. The question was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Dymock with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease expired in 2092. Considering the 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Mr and Mrs. V González took over the lease of a studio flat in Dymock in July 1998. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparable residencies in Dymock with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected yearly. The lease concluded on 24 January 2103. Considering the 77 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.