It’s a harsh truth that a Great Dunmow residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Great Dunmow property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. The majority of leasehold owners in Great Dunmow will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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.
In recent months Sebastian, came perilously near to the eighty-year threshold with the lease on his studio flat in Great Dunmow. Having bought his property 18 years ago, the lease term was of no significance. Luckily, he realised he would soon be paying way over the odds for a lease extension. Sebastian was able to extend his lease just in the nick of time last July. Sebastian and the freeholder subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £1,075.
Last Autumn we were approach by Mr and Mrs. O Hall , who purchased a one bedroom flat in Great Dunmow in November 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Comparative homes in Great Dunmow with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated in 2095. Having 69 years as a residual term we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
Mr and Mrs. B Díaz completed a one bedroom apartment in Great Dunmow in July 1997. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Great Dunmow with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease end date was in 2106. Taking into account 80 years outstanding we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.