Unfortunately that a Dunmow residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Dunmow property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining slips below 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 lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 guidance 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 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.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Dunmow, Erin commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension completed in October 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. G François owned a first floor apartment in Dunmow in October 1996. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar premises in Dunmow with an extended lease were valued around £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease elapsed in 2095. Taking into account 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
Mr B Ali acquired a basement flat in Dunmow in November 2001. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative flats in Dunmow with a long lease were in the region of £223,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2084. Taking into account 59 years remaining we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including fees.