It’s an underpublicised truth that a Great Dunmow residential lease is a wasting 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 reduction being disguised by increases in the Great Dunmow property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Great Dunmow will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Nationwide Building Society | |
| Santander | |
| Royal Bank of Scotland | |
| 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 lawyer we work with provide it.
Last Christmas Nathan, came dangerously close to the eighty-year mark with the lease on his two bedroom flat in Great Dunmow. Having purchased his property 19 years ago, the unexpired term was of little importance. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Nathan was able to extend his lease just ahead of time last June. Nathan and the landlord in the end settled on sum of £5,000 . If he failed to meet the deadline, the price would have gone up by at least £1,075.
In 2010 we were approached by Ms Caitlin Bennett who, having bought a first floor flat in Great Dunmow in January 2010. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative homes in Great Dunmow with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 billed annually. The lease came to a finish in 2078. Considering the 52 years remaining we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 plus professional charges.
In 2009 we were phoned by Mrs A Fournier who, having was assigned a lease of a garden flat in Great Dunmow in June 2005. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Identical residencies in Great Dunmow with a long lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced annually. The lease came to a finish on 1 January 2089. Given that there were 63 years unexpired we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including costs.