The closer a residential lease in Dingle gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Dingle will meet the qualifying criteria; however a conveyancer should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Dingle with in excess of 100 years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Dingle 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 conveyancing solicitor we work with provide it.
Jason was the the leasehold owner of a studio apartment in Dingle being marketed with a lease of fraction over sixty years unexpired. Jason on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last Autumn we were approach by Mr and Mrs. N Rose , who bought a first floor flat in Dingle in August 2000. The question was if we could approximate the price could be for a ninety year lease extension. Identical premises in Dingle with an extended lease were in the region of £168,800. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish on 27 October 2081. Having 55 years left we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of expenses.
In 2014 we were e-mailed by Mr and Mrs. K James who, having purchased a studio apartment in Dingle in June 1998. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Similar residencies in Dingle with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 invoiced per annum. The lease ended on 18 November 2092. Having 66 years remaining we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.