Dockland Settlement leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Dockland Settlement tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Dockland Settlement you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Dockland Settlement with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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 lawyer we work with provide it.
Last Autumn Luca, came precariously close to the eighty-year mark with the lease on his garden flat in Dockland Settlement. In buying his property two decades ago, the lease term was of no significance. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Luca arranged for a lease extension just in the nick of time last June. Luca and the freeholder via the management company subsequently agreed on sum of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,000.
Last Spring we were contacted by Mrs Robyn Williams , who was assigned a lease of a garden flat in Dockland Settlement in November 2012. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Similar homes in Dockland Settlement with a long lease were worth £285,000. The average ground rent payable was £55 collected monthly. The lease finished in 2104. Taking into account 79 years unexpired we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Dockland Settlement premises 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 as at the valuation date was 72 years.