Dymock leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Dymock enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dymock you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Dymock with more than 100 years outstanding 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| 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. |
| 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 |
Retaining our service gives you increased control over the value of your Dymock leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her basement flat in Dymock, Kirsty initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The transaction was finalised in November 2005. The landlord’s charges were kept to an absolute minimum.
Dr F Williams was assigned a lease of a first floor apartment in Dymock in June 1998. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparable properties in Dymock with a long lease were worth £242,600. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 3 April 2092. Taking into account 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
Last Summer we were approach by Mr and Mrs. N Lewis , who moved into a first floor flat in Dymock in May 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Dymock with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed quarterly. The lease expiry date was in 2103. Taking into account 78 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.