When it comes to residential leasehold property in Great Dunmow, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably when there are fewer than 80 years left. Anyone in Great Dunmow with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has fewer than 80 years outstanding, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Great Dunmow,the lease extension lawyers that we work with will always be willing 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.
In 2014 Alex, started to get close to the 80-year threshold with the lease on his two bedroom flat in Great Dunmow. Having purchased his flat two decades ago, the unexpired term was of minimal significance. As luck would have it, he realised he needed to take steps soon on Extending the lease. Alex extended the lease at the eleventh hour last August. Alex and the freeholder in the end agreed on the final figure of £6,000 . If the lease had dipped to less than eighty years, the price would have become more exhorbitant by a minimum £950.
Last Autumn we were e-mailed by Mr R Simon , who took over the lease of a first floor flat in Great Dunmow in August 2007. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable homes in Great Dunmow with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 invoiced annually. The lease concluded on 8 March 2079. Considering the 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of costs.
In 2009 we were approached by Ms Y Ramírez who, having completed a one bedroom apartment in Great Dunmow in January 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparable flats in Great Dunmow with a long lease were worth £225,400. The average amount of ground rent was £45 billed per annum. The lease ended on 16 July 2090. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 not including fees.