Dockland Settlement leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Dockland Settlement tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Dockland Settlement you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Dockland Settlement,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dockland Settlement valuers.
In the wake of 9 months of lengthy correspondence with the landlord of her basement flat in Dockland Settlement, Bethany started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension was finalised in September 2015. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were called by Mrs I Michel , who took over the lease of a purpose-built apartment in Dockland Settlement in September 2003. The question was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Dockland Settlement with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 18 November 2087. Having 61 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.
An example of a Lease Extension decision for a Dockland Settlement residence 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 related to 2 flats. The unexpired lease term was 72 years.