On the balance of probabilities where you own a flat in Dunmow you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent 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 |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Dunmow can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 in-depth market knowledge 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.
Tommy owned a high value apartment in Dunmow being marketed with a lease of a few days over 61 years outstanding. Tommy informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were called by Mr and Mrs. W Moreau who, having completed a purpose-built apartment in Dunmow in August 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Dunmow with a long lease were valued around £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease terminated on 22 September 2094. Having 68 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Last year we were contacted by Mrs Ellen Brooks , who owned a first floor apartment in Dunmow in June 2008. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative premises in Dunmow with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease concluded on 25 May 2083. Taking into account 57 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.