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 the lease gets more expensive. It is the case that most Dunmow tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Dunmow you should see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Dunmow leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Dunmow with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 procure professional help from a conveyancer and surveyor 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 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.
Following lengthy discussions with the landlord of her studio apartment in Dunmow, Lydia commenced the lease extension process as the 80 year threshold was quickly nearing. The lease extension was concluded in January 2008. The landlord’s fees were negotiated to less than 500 pounds.
In 2011 we were phoned by Ms Amy Garcia who, having acquired a basement flat in Dunmow in June 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Dunmow with a long lease were worth £171,800. The average amount of ground rent was £55 invoiced monthly. The lease ended on 24 February 2075. Considering the 50 years outstanding we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus costs.
Dr Erin Gómez owned a one bedroom apartment in Dunmow in June 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable residencies in Dunmow with an extended lease were valued around £280,000. The average amount of ground rent was £45 invoiced annually. The lease finished on 5 November 2095. Having 70 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus expenses.