Dunchurch leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Dunchurch will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately 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 many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society |
Engaging our service will provide you better control over the value of your Dunchurch leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael owned a conversion flat in Dunchurch on the market with a lease of a few days over 61 years remaining. Michael on an informal basis spoke with his freeholder being a well known Manchester-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 a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Michael to exercise his statutory right. Michael obtained expert advice and secured an acceptable resolution informally and sell the flat.
In 2013 we were e-mailed by Mr Aiden Bailey who, having moved into a one bedroom apartment in Dunchurch in June 2005. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical properties in Dunchurch with a long lease were worth £300,000. The average ground rent payable was £50 collected per annum. The lease termination date was on 26 July 2101. Considering the 75 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Dr Isobel Davis purchased a studio apartment in Dunchurch in August 1999. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar flats in Dunchurch with an extended lease were worth £250,400. The average amount of ground rent was £65 collected per annum. The lease ended on 2 January 2090. Considering the 64 years unexpired we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.