When it comes to domestic leasehold property in Dockland Settlement, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are fewer than eighty years left. Anyone in Dockland Settlement with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under eighty years left, under the relevant Act the landlord is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Dockland Settlement with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with undertake 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.
Off the back of protracted negotiations with the landlord of her basement flat in Dockland Settlement, Abigail initiated the lease extension process as the 80 year deadline was quickly nearing. The lease extension was finalised in February 2008. The freeholder’s fees were kept to an absolute minimum.
Dr N Bernard moved into a first floor flat in Dockland Settlement in November 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Dockland Settlement with 100 year plus lease were valued about £183,600. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish on 22 April 2083. Given that there were 57 years unexpired we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
An example of a Lease Extension matter before the tribunal 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 was in relation to 2 flats. The unexpired term was 72 years.