Dunmow 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 your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Dunmow residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dunmow you would be well advised to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Dunmow with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Santander | |
| Skipton Building Society |
Lease extensions in Dunmow can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge procuring Dunmow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dexter owned a high value apartment in Dunmow being sold with a lease of just over fifty eight years outstanding. Dexter on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. W Watson who, having acquired a one bedroom apartment in Dunmow in February 2005. The dilemma was if we could estimate the price could be for a 90 year lease extension. Identical residencies in Dunmow with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed in 2102. Given that there were 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Mr and Mrs. T Clark owned a first floor apartment in Dunmow in November 2001. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar residencies in Dunmow with 100 year plus lease were valued around £257,800. The average ground rent payable was £65 collected every twelve months. The lease finished on 3 March 2091. Considering the 65 years remaining we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of fees.