Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Dunvant. Clearly, the length of lease left shortens over time. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Dunvant have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Dunvant lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with handle Dunvant lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following lengthy correspondence with the landlord of her two bedroom flat in Dunvant, Kate started the lease extension process just as the lease was coming close to the crucial 80-year deadline. The transaction completed in January 2006. The landlord’s fees were kept to an absolute minimum.
Mrs A Nelson took over the lease of a newly refurbished apartment in Dunvant in August 2012. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable residencies in Dunvant with a long lease were in the region of £243,000. The average ground rent payable was £65 billed annually. The lease lapsed in 2088. Having 63 years unexpired we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including fees.
Last Winter we were called by Dr Victoria Lee , who owned a garden apartment in Dunvant in November 2003. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative premises in Dunvant with an extended lease were in the region of £181,600. The average amount of ground rent was £55 collected monthly. The lease terminated in 2077. Given that there were 52 years remaining we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.