Dollis Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Dollis Hill residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dollis Hill you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Following lengthy negotiations with the freeholder of her garden apartment in Dollis Hill, Mia commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction was finalised in October 2009. The landlord’s fees were restricted to a tad over 650 GBP.
In 2013 we were contacted by Dr U Ward who, having moved into a one bedroom apartment in Dollis Hill in November 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Dollis Hill with a long lease were valued about £300,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 7 February 2102. Considering the 76 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Freehold Enfranchisement decision 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.