Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dorchester. Clearly, the period of lease left shortens over time. This may slip by relatively unnoticed when the flat or house has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Dorchester have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give careful deliberation before delaying your Dorchester lease extension. Holding off the cost now likely increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Dorchester with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Dorchester can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 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.
Noah was the the leasehold owner of a studio flat in Dorchester being marketed with a lease of a few days over 59 years unexpired. Noah on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Dr Millie Dupont acquired a newly refurbished flat in Dorchester in July 2003. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical properties in Dorchester with an extended lease were worth £220,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2090. Taking into account 64 years left we approximated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus fees.
Mr Benjamin Thompson bought a studio apartment in Dorchester in August 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Dorchester with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 collected monthly. The lease elapsed in 2101. Having 75 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.