The market value of Great Dunmow 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 unexpired lease term is below than 80 years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Great Dunmow can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge procuring Great Dunmow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Omar owned a conversion apartment in Great Dunmow on the market with a lease of just over fifty eight years unexpired. Omar on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were called by Ms Ashleigh Simon , who purchased a studio flat in Great Dunmow in June 2001. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Great Dunmow with an extended lease were in the region of £261,600. The mid-range ground rent payable was £60 billed per annum. The lease ended on 10 July 2077. Considering the 52 years remaining we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of expenses.
Mrs P Khan completed a basement apartment in Great Dunmow in October 2008. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Great Dunmow with a long lease were valued about £218,000. The mid-range amount of ground rent was £45 billed per annum. The lease lapsed in 2088. Having 63 years remaining we estimated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 not including legals.