Chances are that where you own a flat in Great Dunmow you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Great Dunmow leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a high value apartment in Great Dunmow on the market with a lease of fraction over 59 years unexpired. Aiden on an informal basis contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured satisfactory resolution informally and sell the flat.
In 2010 we were phoned by Ms Lydia Gómez who, having bought a one bedroom flat in Great Dunmow in March 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Great Dunmow with a long lease were worth £218,000. The average amount of ground rent was £45 invoiced per annum. The lease expiry date was in 2087. Considering the 63 years left we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.
Last month we were approach by Mr Kai Clark , who took over the lease of a studio apartment in Great Dunmow in March 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Great Dunmow with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced yearly. The lease concluded on 9 October 2098. Taking into account 74 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.