It’s a harsh certainty that a Great Dunmow residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Great Dunmow property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. Most flat owners in Great Dunmow will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Great Dunmow with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Great Dunmow,the lease extension lawyers 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.
Subsequent to unsuccessful correspondence with the landlord of her one bedroom flat in Great Dunmow, Isobel commenced the lease extension process as the 80 year threshold was swiftly coming. The legal work was concluded in October 2008. The freeholder’s charges were negotiated to a tad over 700 GBP.
In 2010 we were approached by Mr and Mrs. Y Bennett who, having moved into a basement flat in Great Dunmow in July 1997. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Identical flats in Great Dunmow with an extended lease were in the region of £246,800. The average ground rent payable was £60 collected yearly. The lease expired in 2074. Having 50 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus professional charges.
Last Christmas we were called by Mr U Lee , who purchased a purpose-built apartment in Great Dunmow in March 1997. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical premises in Great Dunmow with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 13 November 2085. Having 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.