Dunstable 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. It is the case that most Dunstable tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Dunstable you should see if your lease has between seventy and ninety years left. There are compelling reasons why a Dunstable flat owner with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you increased control over the value of your Dunstable leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the freeholder of her studio flat in Dunstable, Robyn commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The legal work was finalised in August 2009. The freeholder’s fees were kept to an absolute minimum.
Mr Riley Ward completed a newly refurbished flat in Dunstable in April 2008. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar properties in Dunstable with a long lease were valued about £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished on 10 May 2095. Given that there were 71 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Summer we were contacted by Mr and Mrs. S François , who owned a first floor apartment in Dunstable in March 1995. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Similar flats in Dunstable with an extended lease were valued around £225,800. The average ground rent payable was £60 billed every twelve months. The lease ran out in 2084. Having 60 years left we calculated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 exclusive of professional charges.