Dewsbury leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Dewsbury tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Dewsbury you should check if your lease has between 70 and 90 years left. There are good reasons why a Dewsbury leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold premises in Dewsbury with in excess of one hundred years remaining 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 purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Nationwide Building Society | |
| TSB | |
| Yorkshire Building Society |
Engaging our service will provide you increased control over the value of your Dewsbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Sebastian was the the leasehold proprietor of a high value flat in Dewsbury being sold with a lease of a few days over 72 years remaining. Sebastian on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. S Morel moved into a one bedroom apartment in Dewsbury in August 2001. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Dewsbury with an extended lease were valued around £254,200. The average amount of ground rent was £60 collected per annum. The lease concluded on 28 February 2077. Having 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of professional charges.
In 2013 we were e-mailed by Mr and Mrs. C Lee who, having bought a one bedroom flat in Dewsbury in September 2002. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative homes in Dewsbury with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 billed quarterly. The lease elapsed on 10 September 2088. Given that there were 62 years left we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.