The nearer a residential lease in Dunston gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, over 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Dunston will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Dunston with over 100 years remaining on the lease are sometimes regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| National Westminster Bank | |
| Skipton Building Society |
Lease extensions in Dunston can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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.
Dexter owned a studio apartment in Dunston on the market with a lease of fraction over 61 years left. Dexter on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Dexter to exercise his statutory right. Dexter obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2013 we were called by Mr and Mrs. K Sharif who, having took over the lease of a one bedroom flat in Dunston in July 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Dunston with an extended lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2077. Given that there were 51 years remaining we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus fees.
Last Summer we were called by Mr Ibrahim Adams , who acquired a basement apartment in Dunston in November 2000. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Dunston with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease finished on 11 May 2097. Given that there were 71 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.