Unfortunately that a Dunmow residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Dunmow property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Dunmow will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Dunmow with in excess of 100 years outstanding 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 freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Dunmow can be a difficult process. We recommend you procure 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 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.
Ben was the the leasehold proprietor of a conversion flat in Dunmow being marketed with a lease of a little over 61 years left. Ben on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2009 we were called by Dr H King who, having moved into a purpose-built apartment in Dunmow in March 1999. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable properties in Dunmow with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced yearly. The lease finished in 2098. Considering the 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.
Dr U Walker bought a basement flat in Dunmow in March 1996. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar homes in Dunmow with a long lease were worth £233,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease elapsed on 9 February 2087. Given that there were 61 years as a residual term we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus legals.