When it comes to long leasehold premises in Dorchester On Thames, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Dorchester On Thames with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has less than 80 years remaining, under the relevant legislation the freeholder can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Dorchester On Thames with in excess of 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Retaining our service gives you enhanced control over the value of your Dorchester On Thames leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a high value flat in Dorchester On Thames on the market with a lease of fraction over fifty eight years remaining. Daniel informally approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Ms J Dupont moved into a ground floor flat in Dorchester On Thames in November 1998. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Dorchester On Thames with a long lease were worth £173,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 3 January 2080. Having 55 years unexpired we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
Ms Phoebe King purchased a ground floor flat in Dorchester On Thames in April 2000. The question was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical residencies in Dorchester On Thames with a long lease were in the region of £235,200. The mid-range ground rent payable was £45 collected yearly. The lease end date was on 4 January 2091. Considering the 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.