With a domestic leasehold premises in Dockland Settlement, you effectively rent it for a certain amount of time. In recent years 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 rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years left. Anyone in Dockland Settlement with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has under eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The lawyers that we work with procure Dockland Settlement 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 conveyancer we work with provide it.
In the wake of eight months of lengthy discussions with the landlord of her leasehold flat in Dockland Settlement, Chantelle initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in January 2010. The freeholder’s charges were restricted to a tad over 700 GBP.
In 2009 we were e-mailed by Mr F Simon who, having took over the lease of a recently refurbished flat in Dockland Settlement in October 1997. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative residencies in Dockland Settlement with a long lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease concluded on 24 May 2096. Taking into account 71 years outstanding we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension matter before the tribunal for a Dockland Settlement premises 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 lease term was 72 years.