Why you should start your Dockland Settlement lease extension

Main reasons to commence your Dockland Settlement lease extension today:

A Dockland Settlement leasehold property depreciates with the years remaining on the lease.

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 in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Dockland Settlement you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Dockland Settlement property with a lease extension is almost the same value as a freehold

Leasehold properties in Dockland Settlement with in excess of 100 years unexpired 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.

Lenders may not issue a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria generally - this has extended to the property over which the mortgage is to be granted. This has resulted in the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Dockland Settlement lease extensions?

Engaging our service gives you better control over the value of your Dockland Settlement leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Dockland Settlement Lease Extension Example Cases:

Alexandra, Dockland Settlement, London,

Subsequent to unsuccessful discussions with the freeholder of her leasehold apartment in Dockland Settlement, Alexandra started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The lease extension was concluded in August 2012. The landlord’s costs were kept to an absolute minimum.

Dockland Settlement case:

Mr and Mrs. R Wood took over the lease of a one bedroom flat in Dockland Settlement in October 2007. The question was if we could approximate the price would be for a ninety year lease extension. Comparable premises in Dockland Settlement with a long lease were worth £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out in 2103. Having 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus fees.