The market value of Great Dunmow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold premises in Great Dunmow with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Great Dunmow can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in this area.
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.
Jamie was the the leasehold owner of a conversion apartment in Great Dunmow being marketed with a lease of a few days over sixty years left. Jamie on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last Winter we were phoned by Dr U Rodríguez , who purchased a garden apartment in Great Dunmow in February 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparative flats in Great Dunmow with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 billed every twelve months. The lease lapsed on 27 April 2086. Taking into account 60 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of fees.
In 2013 we were phoned by Mr Austin Hernández who, having owned a first floor flat in Great Dunmow in March 1997. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar homes in Great Dunmow with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired in 2097. Considering the 71 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.