It’s a harsh certainty that a Dorchester On Thames residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Dorchester On Thames property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most flat owners in Dorchester On Thames will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Dorchester On Thames with over one hundred 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 premises. 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Dorchester On Thames,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dorchester On Thames valuers.
Cameron was the the leasehold proprietor of a conversion apartment in Dorchester On Thames on the market with a lease of fraction over 61 years unexpired. Cameron on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Autumn we were contacted by Mr and Mrs. T Thomas , who bought a garden apartment in Dorchester On Thames in April 2008. The question was if we could approximate the premium could be to extend the lease by an additional years. Comparative residencies in Dorchester On Thames with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed on 20 September 2095. Given that there were 69 years unexpired we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Mr and Mrs. U Thompson acquired a newly refurbished apartment in Dorchester On Thames in July 2008. The question was if we could estimate the price could be for a 90 year lease extension. Comparative residencies in Dorchester On Thames with a long lease were valued about £290,000. The average ground rent payable was £60 invoiced annually. The lease concluded in 2106. Given that there were 80 years unexpired we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.