When it comes to long leasehold premises in Dunchurch, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years remaining. Residents in Dunchurch with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under 80 years remaining, under the current Act the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 obtain guidance from a conveyancer and valuer with experience in this area.
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 a wealth of experience 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.
Oliver owned a 2 bedroom apartment in Dunchurch on the market with a lease of fraction over fifty eight years left. Oliver on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and secured satisfactory deal informally and readily saleable.
In 2013 we were called by Mrs Rachel James who, having moved into a newly refurbished apartment in Dunchurch in January 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Dunchurch with 100 year plus lease were valued about £174,200. The mid-range amount of ground rent was £55 billed every twelve months. The lease came to a finish on 16 March 2077. Having 51 years left we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including costs.
Last Summer we were phoned by Mr Oscar Ali , who purchased a newly refurbished flat in Dunchurch in May 2003. We are asked if we could estimate the price would be to prolong the lease by an additional years. Similar homes in Dunchurch with a long lease were in the region of £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease termination date was in 2097. Considering the 71 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.