The market value of Dymock leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the remaining term is less than 80 years
Leasehold residencies in Dymock with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dymock can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience procuring Dymock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her ground floor apartment in Dymock, Laura commenced the lease extension process just as her lease was approaching the all-important 80-year deadline. The transaction completed in November 2010. The freeholder’s charges were negotiated to below 450 pounds.
Mr Charlie Campbell owned a garden flat in Dymock in June 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Dymock with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease expiry date was on 23 September 2103. Given that there were 77 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.
Mr and Mrs. E Stewart took over the lease of a newly refurbished flat in Dymock in January 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable premises in Dymock with a long lease were valued around £183,600. The average amount of ground rent was £65 collected yearly. The lease finished on 22 January 2083. Considering the 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.