When it comes to residential leasehold premises in Dockland Settlement, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider 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 once there are fewer than 80 years remaining. Leasehold owners in Dockland Settlement with a lease nearing 81 years unexpired should seriously consider extending it sooner than later. Once a lease has below eighty years left, under the current legislation the landlord is entitled to calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Dockland Settlement with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dockland Settlement can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Dockland Settlement lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Nathaniel, came precariously close to the 80-year mark with the lease on his studio apartment in Dockland Settlement. In buying his flat two decades ago, the unexpired term was of minimal concern. by good luck, he noticed he needed to take action soon on Extending the lease. Nathaniel extended the lease just ahead of time last July. Nathaniel and the freeholder via the management company eventually agreed on a premium of £5,500 . If he not met the deadline, the premium would have increased by at least £1,100.
In 2010 we were called by Dr C Harris who, having acquired a first floor flat in Dockland Settlement in May 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Dockland Settlement with 100 year plus lease were valued about £193,400. The mid-range ground rent payable was £65 billed annually. The lease expired in 2085. Taking into account 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 plus legals.
An example of a Lease Extension case for a Dockland Settlement property 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 term was 72 years.