Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Great Dunmow. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Great Dunmow have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Please give due attention before putting off your Great Dunmow lease extension. Holding off that expense now only increases the price you will eventually have to pay to extend your lease
Leasehold premises in Great Dunmow with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the landlord of her two bedroom flat in Great Dunmow, Sarah commenced the lease extension process as the 80 year threshold was swiftly nearing. The lease extension completed in April 2013. The freeholder’s costs were restricted to under 650 GBP.
In 2013 we were called by Mr and Mrs. R White who, having bought a newly refurbished apartment in Great Dunmow in August 1996. The question was if we could approximate the premium would be to extend the lease by 90 years. Identical homes in Great Dunmow with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced quarterly. The lease elapsed on 25 March 2098. Taking into account 72 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last January we were phoned by Mrs I Brooks , who took over the lease of a newly refurbished apartment in Great Dunmow in November 1995. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Great Dunmow with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 billed monthly. The lease concluded in 2078. Given that there were 52 years remaining we estimated the premium to the landlord to extend the lease to be within £39,000 and £45,000 plus legals.