Dawley and Lawley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Dawley and Lawley residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dawley and Lawley you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Dawley and Lawley 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.
Following protracted correspondence with the landlord of her ground floor flat in Dawley and Lawley, Jessica commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction was concluded in July 2007. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. P Ali moved into a first floor flat in Dawley and Lawley in October 1999. The question was if we could approximate the price could be for a 90 year lease extension. Comparable flats in Dawley and Lawley with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed annually. The lease concluded in 2092. Given that there were 66 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Mrs Chantelle Fournier purchased a one bedroom apartment in Dawley and Lawley in February 1998. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Identical premises in Dawley and Lawley with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 billed annually. The lease came to a finish in 2103. Taking into account 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.