On the balance of probabilities where you own a flat in Great Dunmow you actually own a long leasehold interest over your property
Leasehold premises in Great Dunmow with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Great Dunmow 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 lawyer we work with provide it.
Jack was the the leasehold owner of a studio apartment in Great Dunmow on the market with a lease of fraction over sixty years left. Jack on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jack to exercise his statutory right. Jack procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2012 we were contacted by Mr Luke Lefèvre who, having purchased a first floor flat in Great Dunmow in September 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Great Dunmow with 100 year plus lease were worth £246,800. The average ground rent payable was £60 billed monthly. The lease concluded in 2076. Taking into account 50 years unexpired we calculated the premium to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of professional charges.
In 2012 we were e-mailed by Mr P Mason who, having owned a purpose-built apartment in Great Dunmow in October 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable residencies in Great Dunmow with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed per annum. The lease termination date was in 2087. Considering the 61 years outstanding we estimated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of legals.