With a residential leasehold premises in Great Dunmow, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Great Dunmow with a lease approaching 81 years left should seriously consider extending it sooner as opposed to later. Once a lease has below 80 years remaining, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Tommy was the the leasehold owner of a high value apartment in Great Dunmow on the market with a lease of fraction over fifty eight years outstanding. Tommy informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2009 we were called by Dr Samuel Roberts who, having acquired a basement flat in Great Dunmow in June 2011. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Great Dunmow with a long lease were valued about £227,800. The mid-range amount of ground rent was £45 invoiced per annum. The lease terminated on 27 March 2091. Considering the 65 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last Autumn we were called by Ms Aimee Johnson , who purchased a purpose-built apartment in Great Dunmow in June 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Great Dunmow with an extended lease were valued about £275,000. The average amount of ground rent was £55 invoiced monthly. The lease ended on 7 March 2102. Considering the 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.