For those whose Dymock property is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Dymock can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Dymock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Aiden owned a 2 bedroom apartment in Dymock being sold with a lease of just over 59 years unexpired. Aiden informally approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aiden to invoke his statutory right. Aiden procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2011 we were called by Mr and Mrs. K Morgan who, having moved into a ground floor apartment in Dymock in June 2006. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Dymock with an extended lease were valued around £173,800. The average amount of ground rent was £60 billed quarterly. The lease concluded on 11 March 2081. Having 55 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.
Mr and Mrs. A Baker was assigned a lease of a newly refurbished apartment in Dymock in June 2007. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Identical properties in Dymock with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2092. Having 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.