Dunmow leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Dunmow will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some cases you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her ground floor flat in Dunmow, Naomi started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in June 2014. The landlord’s costs were kept to an absolute minimum.
Last Christmas we were e-mailed by Ms I Ricardo , who moved into a first floor apartment in Dunmow in July 1999. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Dunmow with a long lease were valued around £267,600. The average amount of ground rent was £65 invoiced annually. The lease lapsed in 2093. Given that there were 67 years unexpired we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 plus expenses.
Mr G Allen took over the lease of a basement apartment in Dunmow in July 2002. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative properties in Dunmow with an extended lease were valued about £206,200. The mid-range ground rent payable was £55 collected monthly. The lease ran out in 2082. Given that there were 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.