When it comes to residential leasehold property in Dunnington, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Dunnington with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Dunnington with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 Dunnington can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Dunnington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Eli, came critically close to the 80-year mark with the lease on his leasehold flat in Dunnington. Having bought his property two decades ago, the lease term was of minimal bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Eli was able to extend his lease at the eleventh hour last March. Eli and the landlord in the end settled on the final figure of £5,000 . If the lease had fallen lower than eighty years, the amount would have gone up by a minimum £850.
Mr and Mrs. H King bought a studio flat in Dunnington in January 2004. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Comparable properties in Dunnington with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease finished on 12 January 2099. Given that there were 73 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of fees.
In 2012 we were contacted by Mr William Allen who, having was assigned a lease of a one bedroom flat in Dunnington in June 2007. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable properties in Dunnington with an extended lease were valued around £240,600. The average amount of ground rent was £60 collected monthly. The lease came to a finish on 19 November 2088. Considering the 62 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.