Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dingle. Clearly, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the property needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Dingle have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Dingle lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dingle,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 in-depth market knowledge and the close ties they enjoy with Dingle valuers.
Trailing protracted discussions with the freeholder of her purpose-built flat in Dingle, Louise commenced the lease extension process as the 80 year mark was fast coming. The transaction was finalised in September 2008. The landlord’s charges were restricted to below 600 GBP.
In 2009 we were phoned by Dr Jasper Ward who, having acquired a purpose-built apartment in Dingle in April 2012. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparable flats in Dingle with 100 year plus lease were valued about £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out in 2093. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 plus professional charges.
In 2011 we were phoned by Mrs Natalie Martinez who, having moved into a first floor apartment in Dingle in April 1995. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Dingle with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out on 5 May 2104. Having 78 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.