Dunstable leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Flat owners in Dunstable will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Dunstable,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dunstable valuers.
Last October Alexander, came perilously near to the 80-year mark with the lease on his studio flat in Dunstable. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, he realised he needed to take action soon on Extending the lease. Alexander arranged for a lease extension just ahead of time in July. Alexander and the landlord subsequently agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the price would have become more exhorbitant by at least £900.
Dr Callum Ricardo took over the lease of a basement apartment in Dunstable in August 2004. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparative properties in Dunstable with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 invoiced per annum. The lease termination date was in 2102. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Ms J Clark moved into a studio apartment in Dunstable in July 2009. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparable homes in Dunstable with 100 year plus lease were worth £257,800. The average ground rent payable was £65 collected annually. The lease ran out in 2091. Taking into account 65 years left we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.