Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Great Dunmow. Inevitably, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Great Dunmow have the right to extend the lease for a further ninety years under statute. You should give due consideration before delaying your Great Dunmow lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 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 | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Great Dunmow leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her purpose-built flat in Great Dunmow, Isabelle initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work completed in September 2014. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were phoned by Dr Caleb Gunderson , who acquired a basement apartment in Great Dunmow in November 2003. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Great Dunmow with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease terminated on 13 August 2102. Having 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last Christmas we were contacted by Mr and Mrs. B Gunderson , who acquired a first floor apartment in Great Dunmow in January 2001. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative residencies in Great Dunmow with an extended lease were in the region of £176,200. The mid-range ground rent payable was £65 billed annually. The lease terminated in 2082. Taking into account 56 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 plus fees.