As the the remaining lease term of a Dunstable domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Dunstable will qualify for this right; that being said a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Dunstable with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Dunstable,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dunstable valuers.
In 2014 Jonathan, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Dunstable. Having purchased his property 19 years ago, the unexpired term was of little significance. As luck would have it, he noticed he would soon be paying an escalated premium for a lease extension. Jonathan extended the lease at the eleventh hour in September. Jonathan and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £1,075.
Last Autumn we were contacted by Mr and Mrs. R Hernández , who bought a purpose-built flat in Dunstable in November 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Similar homes in Dunstable with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2102. Having 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.
Mr and Mrs. K Sánchez purchased a first floor apartment in Dunstable in May 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Dunstable with an extended lease were in the region of £265,200. The average amount of ground rent was £65 billed annually. The lease came to a finish on 13 September 2091. Considering the 66 years unexpired we approximated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of legals.