The re-sale value of a leasehold property in Dorchester On Thames depends on how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised prior to the eighty year mark. Leasehold Reform legislation enables Dorchester On Thames qualifying lessees to an additional term of 90 years in addition to the existing term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
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 is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Dorchester On Thames 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.
After lengthy negotiations with the freeholder of her ground floor apartment in Dorchester On Thames, Madeleine commenced the lease extension process as the 80 year threshold was quickly advancing. The transaction was finalised in September 2015. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Dr L Garcia who, having moved into a first floor apartment in Dorchester On Thames in November 2006. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Dorchester On Thames with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 collected monthly. The lease terminated on 5 August 2076. Given that there were 50 years remaining we estimated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.
Last Christmas we were approach by Ms B Campbell , who was assigned a lease of a one bedroom apartment in Dorchester On Thames in May 2006. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Dorchester On Thames with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 8 April 2087. Taking into account 61 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of costs.