Unfortunately that a Dunstable residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Dunstable property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term falls under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Dunstable will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Dunstable with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Dunstable,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dunstable valuers.
In the wake of 9 months of protracted negotiations with the landlord of her studio apartment in Dunstable, Harriet initiated the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in June 2009. The landlord’s costs were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. B González , who owned a ground floor flat in Dunstable in January 2008. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative premises in Dunstable with a long lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ran out on 27 April 2084. Given that there were 58 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
Mr and Mrs. R Martin took over the lease of a one bedroom flat in Dunstable in September 1996. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical premises in Dunstable with 100 year plus lease were valued around £205,000. The average ground rent payable was £50 billed every twelve months. The lease expired in 2105. Taking into account 79 years as a residual term we estimated the premium to the landlord to extend the lease to be between £7,600 and £8,800 not including costs.