The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Dunston have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful consideration before delaying your Dunston lease extension. Shelving that expense today simply increases the amount you will ultimately have to pay for a lease extension.
Leasehold properties in Dunston with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Dunston can be a difficult process. We recommend you get professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dunston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her studio flat in Dunston, Ella initiated the lease extension process as the 80 year mark was fast advancing. The lease extension was finalised in March 2007. The freeholder’s charges were restricted to below 600 pounds.
Mr and Mrs. C Ward bought a one bedroom apartment in Dunston in November 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical residencies in Dunston with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected yearly. The lease came to a finish in 2078. Considering the 53 years outstanding we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last Autumn we were approach by Mr Joseph Khan , who moved into a newly refurbished flat in Dunston in July 2010. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Dunston with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease termination date was in 2098. Having 73 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.