When it comes to long leasehold premises in Dorchester, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted 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. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Residents in Dorchester with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has fewer than 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Dorchester with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Dorchester can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Dorchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the freeholder of her one bedroom flat in Dorchester, Ella initiated the lease extension process just as her lease was approaching the critical 80-year mark. The transaction was concluded in April 2010. The freeholder’s costs were negotiated to a tad over 650 GBP.
In 2012 we were e-mailed by Dr T Mason who, having completed a first floor flat in Dorchester in October 2004. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar residencies in Dorchester with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed in 2091. Taking into account 66 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Dr O White took over the lease of a basement apartment in Dorchester in August 2005. The dilemma was if we could estimate the price would be for a 90 year lease extension. Identical homes in Dorchester with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expiry date was on 16 July 2102. Taking into account 77 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.