For those whose Dollis Hill flat is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is generally considered that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Using our service gives you enhanced control over the value of your Dollis Hill leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Oscar, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Dollis Hill. Having purchased his flat two decades ago, the length of the lease was of minimal concern. Thankfully, he recognised he would imminently be paying an escalated premium for a lease extension. Oscar was able to extend his lease at the eleventh hour in July. Oscar and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had slipped lower than eighty years, the sum would have become more costly by at least £950.
Last Winter we were contacted by Ms T Clarke , who completed a recently refurbished apartment in Dollis Hill in September 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar homes in Dollis Hill with a long lease were worth £205,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2103. Given that there were 78 years left we calculated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Dollis Hill flat 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 term as at the valuation date was 65.58 years.