Dorchester Lease Extension - Free Consultation

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Why you should commence your Dorchester lease extension


Main reasons to start your Dorchester lease extension today:

Increase your lease and increase your Dorchester property value

The market value of Dorchester leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years

Dorchester property with a lease extension has roughly the same value as a freehold

Leasehold properties in Dorchester with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.

Lenders may not finance a property on a short lease

Many mortgage companies insist on a lengthy amount of time left on any leasehold property before they will consider it as adequate security. Regardless of whether you need a mortgage, you should be mindful that it is reasonable to assume that someone wanting to buy your property in the future might well do, so where they are unable to obtain a mortgage, then the financial worth of the property could be adversely impacted. In the last decade the majority of mortgage lenders have increased the required minimum lease length that they are willing to accept

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
National Westminster Bank Mortgage term plus 30 years.
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.

Why use us for your lease extension in Dorchester?

Irrespective of whether you are a tenant or a landlord in Dorchester,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dorchester valuers.

Dorchester Lease Extension Case Summaries:

Aarav, Dorchester, Dorset

Last year Aarav, started to get close to the eighty-year threshold with the lease on his garden apartment in Dorchester. In buying his flat 18 years ago, the length of the lease was of little bearing. Luckily, he became aware that he would soon be paying an inflated amount for a lease extension. Aarav arranged for a lease extension just ahead of time last April. Aarav and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If the lease had gone lower than eighty years, the price would have gone up by a minimum £1,100.

Dorchester case:

In 2009 we were phoned by Mr and Mrs. V Lefebvre who, having owned a one bedroom flat in Dorchester in November 1995. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable flats in Dorchester with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 19 August 2088. Having 63 years as a residual term we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.

Dorchester case:

Last Autumn we were approach by Mr and Mrs. H Nguyen , who completed a recently refurbished flat in Dorchester in May 2006. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Dorchester with an extended lease were in the region of £265,000. The average ground rent payable was £50 collected every twelve months. The lease concluded on 16 March 2099. Considering the 74 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.