When it comes to residential leasehold premises in Dingle, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Dingle with a lease nearing 81 years left should seriously consider extending it sooner than later. When the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Dingle with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dingle can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer 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 in-depth market knowledge 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.
In the wake of 6 months of unsuccessful negotiations with the landlord of her ground floor apartment in Dingle, Victoria initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work was finalised in June 2010. The freeholder’s costs were kept to an absolute minimum.
Ms Abigail François bought a recently refurbished flat in Dingle in March 1998. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Comparable residencies in Dingle with a long lease were worth £260,000. The average amount of ground rent was £50 billed per annum. The lease elapsed in 2097. Taking into account 72 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2009 we were called by Mr Aarav Simon who, having owned a purpose-built apartment in Dingle in August 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Dingle with an extended lease were valued about £256,600. The average amount of ground rent was £60 billed monthly. The lease finished in 2077. Considering the 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus expenses.