Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Great Dunmow. Inevitably, the length of lease left reduces over time. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Great Dunmow have the right to extend the lease for a further ninety years under statute. You should give careful attention before putting off your Great Dunmow lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Great Dunmow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Dunmow valuers.
Hugo was the the leasehold proprietor of a conversion flat in Great Dunmow being sold with a lease of a few days over 59 years remaining. Hugo on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured satisfactory resolution informally and readily saleable.
In 2011 we were phoned by Mrs D Evans who, having purchased a purpose-built apartment in Great Dunmow in March 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Similar flats in Great Dunmow with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced annually. The lease termination date was in 2076. Taking into account 51 years left we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of fees.
Ms D Garcia acquired a first floor apartment in Great Dunmow in April 2001. The question was if we could approximate the premium would be to prolong the lease by ninety years. Identical residencies in Great Dunmow with an extended lease were valued about £210,600. The mid-range ground rent payable was £45 collected per annum. The lease concluded in 2087. Having 62 years remaining we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus expenses.