There is no doubt about it a leasehold flat or house in Dunchurch is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. Most flat owners in Dunchurch will qualify for this right; nevertheless a lawyer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Dunchurch can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Dunchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Sam, came dangerously close to the 80-year threshold with the lease on his two bedroom flat in Dunchurch. In buying his property two decades ago, the lease term was of no bearing. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Sam arranged for a lease extension just under the wire last August. Sam and the landlord eventually settled on a premium of £6,000 . If the lease had dipped lower than eighty years, the sum would have escalated by a minimum £950.
Ms S Hall acquired a first floor flat in Dunchurch in March 2011. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical homes in Dunchurch with a long lease were in the region of £275,000. The average ground rent payable was £65 collected monthly. The lease finished on 3 November 2094. Considering the 68 years unexpired we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Last Summer we were e-mailed by Dr Jason Reed , who took over the lease of a ground floor apartment in Dunchurch in March 1995. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable premises in Dunchurch with 100 year plus lease were valued around £208,600. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed on 8 May 2083. Taking into account 57 years left we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.