Dunmow Lease Extension - Free Consultation

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Top reasons for Dunmow lease extension

Why you should commence your Dunmow lease extension today:

Increase your lease and increase your Dunmow property value

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 your lease becomes more expensive. Most owners of residential leasehold property in Dunmow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dunmow you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Dunmow leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Dunmow with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. 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.

Banks and Building Societies may decide not to issue a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet mortgage lenders start to become concerned at around 75 years. This will cause difficulties when you wish to market or refinance your property as it will be practically unmortgageable. Even though you might not have an imminent plan to sell but when you do your purchaser will need to wait two years before they can exercise the right to a an extension to the lease.

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.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
National Westminster Bank Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

Why use us for your lease extension in Dunmow?

Using 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 wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Dunmow Lease Extension Example Cases:

Sam, Dunmow, Essex,

Sam owned a conversion apartment in Dunmow being sold with a lease of fraction over 59 years remaining. Sam informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.

Dunmow case:

Mr and Mrs. N Nelson completed a purpose-built apartment in Dunmow in January 2001. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative premises in Dunmow with a long lease were in the region of £233,200. The average ground rent payable was £60 invoiced quarterly. The lease expired on 26 September 2082. Taking into account 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 exclusive of fees.

Dunmow case:

Last Winter we were phoned by Dr F López , who acquired a garden apartment in Dunmow in March 1999. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable properties in Dunmow with a long lease were in the region of £174,200. The average amount of ground rent was £55 collected per annum. The lease came to a finish in 2072. Given that there were 51 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.