Great Dunmow leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Great Dunmow tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Great Dunmow you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Virgin |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
In 2014 Cameron, came perilously close to the eighty-year threshold with the lease on his purpose- built flat in Great Dunmow. Having purchased his flat 19 years ago, the length of the lease was of no relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Cameron arranged for a lease extension just under the wire in June. Cameron and the freeholder in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the price would have become more costly by at least £1,100.
In 2010 we were called by Mrs C Scott who, having completed a studio flat in Great Dunmow in January 1997. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Great Dunmow with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected monthly. The lease finished on 2 May 2082. Given that there were 56 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus costs.
Mr and Mrs. C Díaz purchased a basement flat in Great Dunmow in August 2010. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Great Dunmow with an extended lease were valued about £242,600. The average ground rent payable was £45 billed yearly. The lease elapsed in 2093. Having 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.