On the balance of probabilities where you own a flat in Great Dunmow you actually own a long leasehold interest over your property
Leasehold premises in Great Dunmow with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Great Dunmow can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience 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.
Last year Aarav, came seriously near to the eighty-year mark with the lease on his purpose- built flat in Great Dunmow. In buying his home two decades ago, the lease term was of no importance. As luck would have it, he realised he needed to take action soon on Extending the lease. Aarav was able to extend his lease at the eleventh hour in January. Aarav and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,150.
In 2011 we were phoned by Mr and Mrs. S Norbert who, having bought a basement flat in Great Dunmow in September 2010. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparable residencies in Great Dunmow with an extended lease were worth £242,600. The average ground rent payable was £45 invoiced quarterly. The lease finished in 2092. Considering the 67 years remaining we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus costs.
In 2013 we were approached by Mr R Brown who, having purchased a recently refurbished apartment in Great Dunmow in January 2004. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical properties in Great Dunmow with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected quarterly. The lease expired in 2103. Given that there were 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.