When it comes to long leasehold premises in Dockland Settlement, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than eighty years left. Anyone in Dockland Settlement with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the relevant statute the freeholder can calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Dockland Settlement,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dockland Settlement valuers.
Off the back of unsuccessful discussions with the landlord of her one bedroom flat in Dockland Settlement, Melissa commenced the lease extension process as the eighty year threshold was rapidly advancing. The lease extension was concluded in June 2010. The freeholder’s charges were negotiated to below 600 pounds.
Last month we were phoned by Mr Jack Allen , who purchased a one bedroom flat in Dockland Settlement in May 2001. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative residencies in Dockland Settlement with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed monthly. The lease finished on 23 March 2089. Considering the 63 years left we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.
An example of a Lease Extension decision for a Dockland Settlement flat 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 residue of the current lease was 72 years.