Dunstable leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops under eighty years - otherwise a higher premium will be due. Flat owners in Dunstable will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Halifax | |
| Leeds Building Society | |
| The Mortgage Works |
Retaining our service gives you enhanced control over the value of your Dunstable leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Jackson, started to get near to the 80-year threshold with the lease on his leasehold apartment in Dunstable. Having purchased his flat 19 years ago, the unexpired term was of minimal concern. Luckily, he recognised he would soon be paying an escalated premium for Extending the lease. Jackson arranged for a lease extension at the eleventh hour in July. Jackson and the freeholder in the end settled on the final figure of £6,000 . If he had missed the deadline, the amount would have become more costly by at least £850.
In 2011 we were contacted by Ms Isabelle Morgan who, having completed a garden apartment in Dunstable in April 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical residencies in Dunstable with 100 year plus lease were valued about £233,200. The mid-range amount of ground rent was £60 invoiced annually. The lease lapsed on 11 June 2087. Considering the 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of expenses.
Mrs S Lewis bought a first floor flat in Dunstable in May 1995. The question was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Dunstable with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2076. Taking into account 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus professional charges.