As the the remaining lease term of a Dunstable domestic lease decreases so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Dunstable will qualify for this right; that being said a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Dunstable leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a 2 bedroom apartment in Dunstable being marketed with a lease of just over sixty years remaining. Ollie on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
In 2013 we were contacted by Mr and Mrs. R Fournier who, having acquired a newly refurbished flat in Dunstable in July 2005. We are asked if we could estimate the price could be to extend the lease by 90 years. Similar flats in Dunstable with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 collected annually. The lease terminated on 17 July 2090. Taking into account 64 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 not including legals.
Last Winter we were called by Ms P Leroy , who completed a garden flat in Dunstable in July 2011. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Dunstable with an extended lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 17 August 2079. Given that there were 53 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.