Dunholme leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Dunholme tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Dunholme you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Dunholme can be a difficult process. We recommend you obtain professional help from a lawyer 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 a wealth of experience procuring Dunholme lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the landlord of her studio flat in Dunholme, Sarah started the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension was finalised in August 2005. The freeholder’s fees were restricted to slightly above 500 GBP.
In 2009 we were called by Mr Aaron Johnson who, having completed a newly refurbished flat in Dunholme in November 2005. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Dunholme with a long lease were valued about £201,200. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2082. Considering the 56 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 plus professional charges.
In 2014 we were called by Mr and Mrs. N White who, having owned a first floor apartment in Dunholme in May 1995. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Dunholme with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 billed quarterly. The lease concluded on 22 October 2102. Taking into account 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.