With a long leasehold property in Dockland Settlement, you are actually buying a right to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Residents in Dockland Settlement with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and demand a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in Dockland Settlement with more than 100 years unexpired on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Dockland Settlement can be a difficult process. We recommend you get guidance from a conveyancer 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 dealing with 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.
Twenty four months ago Finn, started to get near to the eighty-year threshold with the lease on his garden apartment in Dockland Settlement. Having bought his property twenty years previously, the length of the lease was of little significance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Finn arranged for a lease extension just under the wire in June. Finn and the freeholder in the end agreed on an amount of £5,500 . If the lease had gone below eighty years, the figure would have gone up by at least £1,075.
Mr and Mrs. M Michel acquired a basement apartment in Dockland Settlement in November 2006. The question was if we could estimate the premium could be for a 90 year lease extension. Similar premises in Dockland Settlement with a long lease were worth £255,000. The average ground rent payable was £50 collected yearly. The lease expiry date was on 15 January 2096. Taking into account 70 years outstanding we estimated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including costs.
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 affected 2 flats. The unexpired term as at the valuation date was 72 years.