Dollis Hill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Dollis Hill tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Dollis Hill you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Dollis Hill flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Dollis Hill,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 experience and the close ties they enjoy with Dollis Hill valuers.
Aiden was the the leasehold proprietor of a high value flat in Dollis Hill on the market with a lease of a few days over fifty eight years outstanding. Aiden informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. H Díaz , who bought a purpose-built apartment in Dollis Hill in November 2004. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Similar properties in Dollis Hill with an extended lease were worth £250,400. The average ground rent payable was £65 collected quarterly. The lease expired on 22 January 2089. Having 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Dollis Hill premises 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 was in relation to 2 flats. The unexpired residue of the current lease was 65.58 years.