Dunstable leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Flat owners in Dunstable will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Dunstable leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a studio flat in Dunstable on the market with a lease of a few days over 59 years remaining. Teddy informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Christmas we were contacted by Mr and Mrs. V Ali , who purchased a first floor flat in Dunstable in June 1999. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparable premises in Dunstable with a long lease were in the region of £189,000. The mid-range amount of ground rent was £55 collected annually. The lease ended on 12 October 2079. Taking into account 53 years left we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Dr U Williams completed a garden apartment in Dunstable in August 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Identical properties in Dunstable with 100 year plus lease were valued about £290,000. The average amount of ground rent was £45 invoiced annually. The lease came to a finish on 15 February 2099. Having 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.