Dorchester leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Dorchester residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dorchester you should check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Dorchester flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Dorchester can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Subsequent to lengthy negotiations with the freeholder of her studio flat in Dorchester, Isabel initiated the lease extension process as the 80 year mark was rapidly approaching. The legal work was finalised in January 2015. The landlord’s costs were kept to an absolute minimum.
Last Winter we were contacted by Dr G Young , who purchased a ground floor apartment in Dorchester in January 2003. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable flats in Dorchester with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease concluded in 2106. Given that there were 80 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. M Morgan purchased a newly refurbished flat in Dorchester in August 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Comparative flats in Dorchester with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was on 28 February 2086. Given that there were 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.