Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dockland Settlement. Clearly, the term of lease left reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Dockland Settlement have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Dockland Settlement lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Dockland Settlement,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 experience and the close ties they enjoy with Dockland Settlement valuers.
In 2014 Callum, came seriously near to the 80-year threshold with the lease on his one bedroom apartment in Dockland Settlement. In buying his flat 19 years ago, the unexpired term was of no bearing. Luckily, he noticed he needed to take steps soon on Extending the lease. Callum was able to extend his lease just under the wire in March. Callum and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had fallen to less than 80 years, the figure would have gone up by a minimum £1,100.
Mr and Mrs. L Ricardo was assigned a lease of a first floor apartment in Dockland Settlement in November 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in Dockland Settlement with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 13 May 2094. Considering the 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension decision for a Dockland Settlement property is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case was in relation to 2 flats. The unexpired term as at the valuation date was 72 years.