Dunstable leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount will be payable. Flat owners in Dunstable will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Dunstable with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
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Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Halifax | Minimum 70 years from the date 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. |
Using our service will provide you enhanced control over the value of your Dunstable leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jayden, started to get near to the eighty-year threshold with the lease on his studio apartment in Dunstable. In buying his property 18 years ago, the lease term was of little interest. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Jayden was able to extend his lease just ahead of time last May. Jayden and the freeholder in the end agreed on the final figure of £5,000 . If the lease had fallen below 80 years, the sum would have gone up by at least £1,025.
Last Autumn we were called by Mr and Mrs. F Rodríguez , who acquired a one bedroom apartment in Dunstable in January 2011. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative properties in Dunstable with 100 year plus lease were worth £265,200. The average ground rent payable was £65 invoiced yearly. The lease ended in 2091. Taking into account 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus legals.
In 2014 we were approached by Dr T Rose who, having took over the lease of a first floor apartment in Dunstable in June 2004. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Dunstable with an extended lease were worth £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 2 May 2080. Given that there were 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including expenses.