Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dunchurch. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Dunchurch have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful consideration before putting off your Dunchurch lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dunchurch can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor 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 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.
Tommy was the the leasehold proprietor of a 2 bedroom flat in Dunchurch being sold with a lease of fraction over sixty years remaining. Tommy on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2014 we were approached by Mrs Isabel Clarke who, having took over the lease of a one bedroom flat in Dunchurch in September 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Dunchurch with 100 year plus lease were valued about £189,000. The average amount of ground rent was £55 invoiced quarterly. The lease termination date was in 2078. Having 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Last Winter we were e-mailed by Mrs Bethany Anderson , who took over the lease of a basement apartment in Dunchurch in January 1996. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Dunchurch with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 invoiced per annum. The lease ended on 20 March 2098. Given that there were 73 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.