Dunmow leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Dunmow will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Virgin |
Engaging our service will provide you better control over the value of your Dunmow leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Stanley owned a studio flat in Dunmow on the market with a lease of just over 72 years left. Stanley informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Stanley to exercise his statutory right. Stanley procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
In 2010 we were phoned by Mr Finley Gómez who, having bought a one bedroom flat in Dunmow in September 2011. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparable residencies in Dunmow with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected yearly. The lease lapsed in 2079. Considering the 53 years left we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.
Mr and Mrs. G Bonnet was assigned a lease of a recently refurbished flat in Dunmow in January 2012. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar premises in Dunmow with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected yearly. The lease end date was in 2099. Taking into account 73 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.