With a domestic leasehold premises in Dunstable, you are actually buying a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Anyone in Dunstable with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years left, under the current statute the landlord can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society |
Retaining our service will provide you increased 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold owner of a studio apartment in Dunstable being sold with a lease of just over 72 years left. Benjamin on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.
Dr U Cooper took over the lease of a recently refurbished flat in Dunstable in November 1998. The question was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar flats in Dunstable with an extended lease were in the region of £213,600. The mid-range amount of ground rent was £60 collected quarterly. The lease expired on 8 September 2083. Considering the 57 years left we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.
In 2012 we were e-mailed by Mr and Mrs. I Brown who, having moved into a ground floor apartment in Dunstable in April 2007. We are asked if we could approximate the price could be for a ninety year lease extension. Similar residencies in Dunstable with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed quarterly. The lease ended in 2103. Considering the 77 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.