Chances are that if you own a flat in Dunmow you actually own a long leasehold interest over your property
Leasehold residencies in Dunmow with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Dunmow can be a difficult process. We recommend you obtain guidance from a lawyer 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 Dunmow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Cameron, came precariously near to the 80-year threshold with the lease on his purpose- built apartment in Dunmow. In buying his property two decades ago, the lease term was of no relevance. Fortunately, he recognised he needed to take action soon on a lease extension. Cameron arranged for a lease extension just ahead of time in March. Cameron and the landlord subsequently settled on sum of £5,500 . If the lease had slipped below eighty years, the price would have gone up by at least £1,050.
In 2011 we were contacted by Mr and Mrs. D Cox who, having moved into a ground floor flat in Dunmow in September 2004. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable flats in Dunmow with 100 year plus lease were in the region of £174,200. The mid-range ground rent payable was £55 billed yearly. The lease ended in 2076. Given that there were 51 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
Dr Isaac Jones took over the lease of a newly refurbished flat in Dunmow in January 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Dunmow with a long lease were valued about £285,000. The average amount of ground rent was £45 billed quarterly. The lease came to a finish on 19 November 2096. Considering the 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.