For those whose Dymock home is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
In 2014 Zachary, came very close to the 80-year mark with the lease on his basement apartment in Dymock. In buying his flat two decades ago, the unexpired term was of minimal concern. Fortunately, he noticed he would imminently be paying an inflated amount for Extending the lease. Zachary arranged for a lease extension at the eleventh hour last August. Zachary and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have gone up by a minimum £1,150.
In 2013 we were phoned by Ms Isabelle Bertrand who, having completed a first floor flat in Dymock in June 2006. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Dymock with 100 year plus lease were worth £264,000. The average ground rent payable was £60 billed annually. The lease expired in 2079. Having 53 years unexpired we calculated the premium to the landlord to extend the lease to be between £37,100 and £42,800 plus fees.
Last Spring we were phoned by Mr G Clarke , who took over the lease of a one bedroom flat in Dymock in September 2012. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical residencies in Dymock with a long lease were in the region of £225,400. The average ground rent payable was £45 invoiced quarterly. The lease expiry date was on 22 January 2090. Taking into account 64 years outstanding we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 plus legals.