Main reasons to commence your Dunstable lease extension

Top reasons for lease extension now:

A Dunstable leasehold property depreciates with the years remaining on the lease.

The market value of a leasehold property in Dunstable is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded prior to the eighty year cut off point. Current legislation entitles Dunstable qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold properties in Dunstable with over 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.

Banks and Building Societies will not grant a mortgage on a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly below seventy years as they are deemed to be inadequate security.

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

Regardless of whether you are a tenant or a freeholder in Dunstable,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dunstable valuers.

Dunstable Lease Extension Case Summaries:

Toby, Dunstable, Bedfordshire,

Toby was the the leasehold owner of a studio flat in Dunstable on the market with a lease of fraction over 59 years unexpired. Toby informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.

Dunstable case:

Mr and Mrs. S Alexander purchased a one bedroom apartment in Dunstable in November 2005. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable residencies in Dunstable with an extended lease were worth £280,000. The average ground rent payable was £45 collected annually. The lease finished on 6 April 2095. Considering the 69 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.

Dunstable case:

Dr V Hernández was assigned a lease of a basement apartment in Dunstable in February 2005. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar premises in Dunstable with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 billed every twelve months. The lease concluded in 2084. Having 58 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.