Main reasons to commence your Dunstable lease extension

Why you should commence your Dunstable lease extension today:

A Dunstable lease depreciates with the years remaining on the lease.

Dunstable leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Dunstable residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dunstable you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a Dunstable leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.

Banks and Building Societies may decide not to issue a mortgage with a short lease

Lenders are really restricting their approach as regards to properties in Dunstable with short leases. For example you may find that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refrain from lending completely, so where you wanted to sell, your only options would be to find a cash buyer, or try your luck at auction thus reducing the amount of prospective purchasers.

What makes us experts in Dunstable lease extensions?

Using our service gives you better control over the value of your Dunstable leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish 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.

Dunstable Lease Extension Example Cases:

Ellie, Dunstable, Bedfordshire,

Following lengthy discussions with the freeholder of her basement flat in Dunstable, Ellie commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The lease extension was concluded in August 2006. The landlord’s fees were negotiated to under 600 GBP.

Dunstable case:

Dr P Gray bought a one bedroom flat in Dunstable in May 1999. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable premises in Dunstable with 100 year plus lease were valued around £257,800. The average ground rent payable was £65 invoiced annually. The lease concluded in 2091. Having 65 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 not including fees.

Dunstable case:

In 2010 we were e-mailed by Mr and Mrs. S Gray who, having bought a first floor flat in Dunstable in January 2000. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Identical flats in Dunstable with 100 year plus lease were worth £196,400. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2080. Having 54 years remaining we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 exclusive of fees.