Unfortunately that a Dymock residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Dymock property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Dymock will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Dymock with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dymock,the lease extension lawyers that we work with will always be happy 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.
Logan was the the leasehold proprietor of a high value flat in Dymock on the market with a lease of just over 61 years unexpired. Logan on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
In 2009 we were contacted by Mr George Roberts who, having purchased a first floor apartment in Dymock in July 1999. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Dymock with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease expiry date was on 8 April 2099. Considering the 75 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr Luca Lee was assigned a lease of a first floor flat in Dymock in November 2000. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Dymock with a long lease were in the region of £173,800. The mid-range ground rent payable was £65 collected annually. The lease ran out on 3 April 2079. Having 55 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.