When it comes to residential leasehold premises in Dunstable, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Residents in Dunstable with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has fewer than eighty years remaining, under the current statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide 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 conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the freeholder of her two bedroom flat in Dunstable, Ellie commenced the lease extension process as the 80 year mark was swiftly advancing. The lease extension completed in July 2012. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were approach by Ms K Nelson , who owned a purpose-built apartment in Dunstable in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Similar properties in Dunstable with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 collected annually. The lease concluded in 2105. Given that there were 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
In 2011 we were e-mailed by Mr V Martínez who, having completed a garden apartment in Dunstable in June 2008. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Dunstable with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired on 4 September 2094. Taking into account 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.