Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dymock. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Dymock have the legal entitlement to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before delaying your Dymock lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Dymock leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold proprietor of a high value flat in Dymock on the market with a lease of just over fifty eight years left. Austin informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and secured satisfactory resolution informally and readily saleable.
Mr W Roux was assigned a lease of a basement flat in Dymock in February 2004. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Identical properties in Dymock with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 billed annually. The lease finished in 2096. Taking into account 70 years left we estimated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of professional charges.
Last Autumn we were contacted by Mr and Mrs. Y Collins , who owned a recently refurbished flat in Dymock in September 2003. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative residencies in Dymock with 100 year plus lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2076. Taking into account 50 years remaining we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.