On the balance of probabilities where you own a flat in Dunstable you actually own a long leasehold interest over your property
Leasehold residencies in Dunstable with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The lawyers that we work with undertake Dunstable lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sebastian owned a high value apartment in Dunstable being marketed with a lease of fraction over fifty eight years remaining. Sebastian on an informal basis approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Sebastian to exercise his statutory right. Sebastian obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2009 we were approached by Mr K Khan who, having was assigned a lease of a studio apartment in Dunstable in June 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar properties in Dunstable with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 billed every twelve months. The lease end date was on 9 September 2078. Taking into account 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
In 2010 we were contacted by Mr P Gray who, having purchased a studio apartment in Dunstable in July 1995. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Dunstable with a long lease were valued about £290,000. The mid-range amount of ground rent was £45 billed monthly. The lease lapsed in 2098. Having 72 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of expenses.