Unfortunately that a Dorchester On Thames residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Dorchester On Thames property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Dorchester On Thames will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Dorchester On Thames with more than 100 years left on the lease are often 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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea Building Society | 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. |
| Godiva Mortgages | 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 |
Irrespective of whether you are a tenant or a landlord in Dorchester On Thames,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dorchester On Thames valuers.
Last year Owen, came dangerously close to the 80-year mark with the lease on his two bedroom apartment in Dorchester On Thames. Having purchased his home two decades ago, the lease term was of minimal concern. Fortunately, he recognised he needed to take action soon on Extending the lease. Owen was able to extend his lease just under the wire last January. Owen and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If the lease had slipped to less than 80 years, the price would have increased by at least £1,025.
Dr Joseph Collins bought a one bedroom apartment in Dorchester On Thames in April 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Dorchester On Thames with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced yearly. The lease ran out in 2090. Having 64 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of fees.
Dr C González purchased a garden apartment in Dorchester On Thames in January 1996. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar flats in Dorchester On Thames with 100 year plus lease were valued about £270,000. The average amount of ground rent was £55 billed every twelve months. The lease expired on 2 May 2101. Considering the 75 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.