Main reasons to start your Great Dunmow lease extension

Why you should commence your Great Dunmow lease extension today:

A Great Dunmow leasehold property depreciates with the years remaining on the lease.

Great Dunmow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Great Dunmow tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Great Dunmow you would be well advised to see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

An extended lease has roughly the same value as a freehold

Leasehold residencies in Great Dunmow with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Lending institutions may not lend with a short lease

The definition of a short lease depends on the specific mortgage company, yet mortgage lenders start to get jittery at around 75 years. This may be problematic when you wish to sell or remortgage your property as it will be practically unmortgageable. You may have no immediate plan to sell but when you do your buyer will have to wait 2 years before being able to commence the legal procedures for a lease extension.

What makes us experts in Great Dunmow lease extensions?

Lease extensions in Great Dunmow can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Great Dunmow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Great Dunmow Lease Extension Case Studies:

Lauren, Great Dunmow, Essex,

Off the back of lengthy negotiations with the landlord of her purpose-built flat in Great Dunmow, Lauren commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension was finalised in November 2005. The landlord’s charges were restricted to slightly above 600 GBP.

Great Dunmow case:

In 2009 we were approached by Ms B Walker who, having acquired a first floor flat in Great Dunmow in March 1998. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical properties in Great Dunmow with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced monthly. The lease terminated on 19 May 2105. Taking into account 79 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.

Great Dunmow case:

Last Christmas we were called by Dr J Jackson , who bought a studio flat in Great Dunmow in November 1999. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Great Dunmow with a long lease were valued around £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease ended in 2085. Having 59 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.