The only way is down when it comes to Dymock lease terms. Dymock properties that have a residual term fewer than 80 years will de-escalate in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Dymock with over 100 years left on the lease are sometimes referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Dymock valuers.
In the wake of 6 months of protracted discussions with the landlord of her ground floor flat in Dymock, Bethany initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction completed in April 2015. The landlord’s fees were negotiated to under 450 pounds.
Last year we were called by Mr and Mrs. M Williams , who bought a studio flat in Dymock in September 2011. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in Dymock with 100 year plus lease were worth £245,000. The average ground rent payable was £50 collected yearly. The lease concluded in 2094. Considering the 68 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last month we were called by Dr K François , who completed a garden apartment in Dymock in November 2008. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical residencies in Dymock with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 11 September 2105. Considering the 79 years remaining we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.