The re-sale value of a leasehold property in Dunstable depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year threshold. Leasehold Reform legislation entitles Dunstable qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Dunstable can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Dunstable lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Thomas, came precariously near to the eighty-year mark with the lease on his ground floor flat in Dunstable. Having bought his flat two decades ago, the unexpired term was of no bearing. by good luck, he noticed he needed to take action soon on a lease extension. Thomas extended the lease at the eleventh hour last May. Thomas and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had descended to less than eighty years, the premium would have gone up by a minimum £1,075.
Last year we were contacted by Dr A Khan , who took over the lease of a purpose-built flat in Dunstable in August 2006. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative properties in Dunstable with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 invoiced every twelve months. The lease lapsed in 2094. Given that there were 68 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.
In 2012 we were e-mailed by Mr and Mrs. L Lewis who, having completed a garden flat in Dunstable in October 1999. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Dunstable with a long lease were valued about £213,600. The average ground rent payable was £60 invoiced annually. The lease ended on 10 October 2083. Having 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus legals.