The only way is down when it comes to Dollis Hill lease terms. Dollis Hill properties that have a remaining term less than than 80 years will reduce in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The lawyers that we work with undertake Dollis Hill 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 conveyancer we work with provide it.
Last year Michael, came seriously near to the eighty-year threshold with the lease on his one bedroom apartment in Dollis Hill. Having bought his flat two decades ago, the unexpired term was of little interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Michael arranged for a lease extension just ahead of time last September. Michael and the landlord who owned the flat above in the end settled on an amount of £5,500 . If he had missed the deadline, the premium would have become more costly by a minimum £1,050.
Mrs I Rodríguez took over the lease of a basement apartment in Dollis Hill in November 1996. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Dollis Hill with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 billed monthly. The lease termination date was in 2078. Considering the 52 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Dollis Hill property is 12 & 12A Deacon Road in May 2010. the Tribunal concluded that the price to be paid for the freehold should be £38,287 This case affected 2 flats. The unexpired term as at the valuation date was 65.58 years.