Why you should commence your Dunmow lease extension

Top reasons for lease extension now:

Increase your lease and increase your Dunmow property value

The only way is down when it comes to Dunmow lease terms. Dunmow properties that have a remaining term fewer than 80 years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.

Dunmow property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Dunmow with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Mortgage lenders may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you come to market or remortgage your flat as it will be practically unmortgageable. You may not have an imminent desire to sell but when you do your purchaser will need to hold off for 2 years before being able to initiate the legal procedures for an extension to the lease.

Get in touch with one of our Dunmow lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with handle Dunmow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.

Dunmow Lease Extension Example Cases:

Aarav, Dunmow, Essex,

Aarav owned a 2 bedroom apartment in Dunmow being sold with a lease of a few days over 61 years left. Aarav on an informal basis spoke with his landlord being a well known Bristol-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 subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Aarav to exercise his statutory right. Aarav procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.

Dunmow case:

Last Winter we were e-mailed by Mr D Watson , who took over the lease of a purpose-built flat in Dunmow in April 1995. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative residencies in Dunmow with 100 year plus lease were valued around £210,000. The average amount of ground rent was £50 invoiced annually. The lease ran out on 2 August 2106. Given that there were 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.

Dunmow case:

Dr Samuel Rose was assigned a lease of a one bedroom flat in Dunmow in March 2006. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Dunmow with a long lease were valued around £275,000. The mid-range ground rent payable was £45 collected annually. The lease end date was in 2095. Taking into account 69 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.