As the the remaining lease term of a Dunchurch residential lease diminished so does its value and therefore the value of your property. Where the residual term has, beyond 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Dunchurch will qualify for this right; however a conveyancer will be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Dunchurch,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dunchurch valuers.
Harvey was the the leasehold proprietor of a high value flat in Dunchurch being sold with a lease of just over 59 years left. Harvey informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the property.
Mrs Erin Jackson completed a ground floor flat in Dunchurch in May 2008. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Dunchurch with a long lease were in the region of £216,000. The average ground rent payable was £60 invoiced quarterly. The lease terminated in 2083. Taking into account 58 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.
Last year we were contacted by Dr U Hill , who took over the lease of a basement apartment in Dunchurch in January 2007. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative homes in Dunchurch with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced monthly. The lease ended in 2103. Having 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including costs.