Why you should start your Dunstable lease extension

Top reasons for lease extension now:

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

The value of Dunstable leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

Leasehold residencies in Dunstable with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.

Lenders may not issue a mortgage with a short lease

The propensity since the credit crunch has been for lenders to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Dunstable lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you increased 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 lawyers 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:

Mason, Dunstable, Bedfordshire,

Mason owned a studio apartment in Dunstable on the market with a lease of a few days over 72 years remaining. Mason on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.

Dunstable case:

Ms Aimee Baker took over the lease of a one bedroom flat in Dunstable in November 2009. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar homes in Dunstable with an extended lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease terminated in 2099. Given that there were 73 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.

Dunstable case:

In 2012 we were called by Mrs Y Rodríguez who, having purchased a purpose-built flat in Dunstable in February 2011. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable homes in Dunstable with an extended lease were valued about £240,600. The mid-range ground rent payable was £65 invoiced monthly. The lease finished in 2088. Having 62 years unexpired we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.