With a domestic leasehold premises in Dingle, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years remaining. Anyone in Dingle with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has fewer than eighty years left, under the current Act the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety 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 |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Dingle can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Dingle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Daniel, started to get close to the 80-year threshold with the lease on his two bedroom flat in Dingle. In buying his property two decades ago, the unexpired term was of no concern. by good luck, he recognised he needed to take steps soon on a lease extension. Daniel was able to extend his lease just under the wire last May. Daniel and the landlord who owned the flat above eventually settled on sum of £5,000 . If he had missed the deadline, the premium would have become more costly by a minimum £975.
Last Christmas we were phoned by Mr and Mrs. P Bertrand , who took over the lease of a recently refurbished flat in Dingle in July 1997. The question was if we could approximate the price could be for a ninety year extension to my lease. Comparative flats in Dingle with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced monthly. The lease termination date was on 14 August 2083. Considering the 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Last January we were called by Mr Matthew Green , who moved into a one bedroom flat in Dingle in June 2008. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Dingle with a long lease were valued about £245,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2094. Given that there were 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.