Unfortunately that a Dunstable residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Dunstable property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Dunstable will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Retaining our service gives you better control over the value of your Dunstable leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Finn owned a conversion apartment in Dunstable being sold with a lease of fraction over 59 years unexpired. Finn informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. No ground rent would be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Christmas we were phoned by Mr and Mrs. H Hernández , who owned a ground floor flat in Dunstable in July 2007. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical premises in Dunstable with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish on 17 June 2103. Considering the 77 years remaining we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
In 2011 we were called by Ms Georgia Lefèvre who, having moved into a one bedroom flat in Dunstable in September 1998. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Dunstable with an extended lease were valued about £265,200. The average ground rent payable was £65 collected per annum. The lease terminated on 27 August 2092. Taking into account 66 years remaining we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 plus expenses.