It’s a harsh truth that a Great Dunmow residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Great Dunmow property prices.Where your lease has approximately 90 years left, you should start thinking about 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 below eighty years - otherwise a higher amount will be payable. Most flat owners in Great Dunmow will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancers that we work with procure Great Dunmow lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Sam, came perilously near to the eighty-year threshold with the lease on his two bedroom flat in Great Dunmow. In buying his home two decades ago, the length of the lease was of no concern. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Sam extended the lease just ahead of time last May. Sam and the landlord ultimately settled on sum of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £900.
Last month we were phoned by Mr and Mrs. G Williams , who purchased a garden flat in Great Dunmow in October 2011. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative premises in Great Dunmow with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2101. Considering the 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last February we were approach by Dr K Thompson , who was assigned a lease of a one bedroom apartment in Great Dunmow in July 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Great Dunmow with an extended lease were valued around £173,800. The mid-range ground rent payable was £60 collected annually. The lease came to a finish in 2081. Considering the 55 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.