Dymock leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Dymock will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Dymock with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Dymock,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dymock valuers.
Subsequent to unsuccessful correspondence with the landlord of her first floor apartment in Dymock, Bethan commenced the lease extension process as the 80 year mark was fast advancing. The transaction was concluded in August 2013. The landlord’s charges were kept to an absolute minimum.
Dr Finley Davis completed a studio apartment in Dymock in February 2004. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Dymock with a long lease were valued around £265,000. The average ground rent payable was £50 invoiced quarterly. The lease termination date was on 6 November 2099. Taking into account 73 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2010 we were phoned by Mrs Stephanie Roux who, having moved into a ground floor flat in Dymock in November 2002. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparable premises in Dymock with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 collected monthly. The lease finished on 24 February 2079. Taking into account 53 years unexpired we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 not including costs.