On the balance of probabilities where you own a flat in Dymock you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Dymock leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Archie, started to get near to the 80-year threshold with the lease on his purpose- built flat in Dymock. In buying his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Archie extended the lease just ahead of time last May. Archie and the freeholder via the management company ultimately settled on sum of £5,000 . If he had missed the deadline, the amount would have escalated by at least £1,125.
In 2012 we were phoned by Mr R Baker who, having moved into a purpose-built apartment in Dymock in April 2004. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Dymock with a long lease were worth £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease expiry date was in 2077. Considering the 51 years left we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.
Mrs Katie Hall purchased a basement flat in Dymock in January 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Dymock with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 invoiced quarterly. The lease concluded on 8 February 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.