Dewsbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Dewsbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dewsbury you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a property with in excess of 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 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 lawyers that we work with handle Dewsbury 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.
Daniel owned a high value flat in Dewsbury on the market with a lease of a few days over fifty eight years left. Daniel on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Ms Rebecca Phillips moved into a purpose-built apartment in Dewsbury in February 2004. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative properties in Dewsbury with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 billed quarterly. The lease came to a finish in 2098. Taking into account 73 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mr and Mrs. M Martin completed a one bedroom flat in Dewsbury in June 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical homes in Dewsbury with a long lease were valued about £264,000. The average amount of ground rent was £60 invoiced yearly. The lease expiry date was on 25 January 2078. Considering the 53 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of professional charges.