As the length of the unexpired term of a Dockland Settlement domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Dockland Settlement will meet the qualifying criteria; however a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Dockland Settlement with in excess of 100 years left on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Dockland Settlement leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin owned a 2 bedroom apartment in Dockland Settlement on the market with a lease of a few days over 59 years left. Benjamin informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the property.
Last month we were approach by Mr and Mrs. Y Cooper , who completed a one bedroom apartment in Dockland Settlement in January 2006. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparative homes in Dockland Settlement with a long lease were worth £285,000. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2106. Having 80 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Dockland Settlement flat is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case was in relation to 2 flats. The unexpired term was 72 years.