Main reasons to commence your Dorchester lease extension

Top reasons for lease extension now:

A Dorchester lease depreciates with the years remaining on the lease.

There is no doubt about it a leasehold flat or house in Dorchester is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. Most flat owners in Dorchester will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.

An extended lease has roughly the same value as a freehold

Leasehold premises in Dorchester with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.

Banks and Building Societies will not grant a mortgage on a short lease

Banks and building societies do not grant a mortgage on short residential leases. You most probably experience problems where you want to sell your flat in Dorchester if the unexpired term of your lease is less than the criteria set by most banks and building societies. Different lenders have different criteria but on the whole theyrequire a minimum remaining lease term of seventy years.

Get in touch with one of our Dorchester lease extension solicitors or enfranchisement solicitors

Using our service will provide you increased control over the value of your Dorchester leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Dorchester Lease Extension Example Cases:

Natalie, Dorchester, Dorset,

In the wake of 6 months of protracted negotiations with the landlord of her two bedroom flat in Dorchester, Natalie initiated the lease extension process as the 80 year deadline was rapidly nearing. The lease extension was finalised in January 2005. The freeholder’s charges were kept to an absolute minimum.

Dorchester case:

In 2014 we were contacted by Mr Ollie Pérez who, having took over the lease of a studio flat in Dorchester in February 1999. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Dorchester with an extended lease were valued around £176,200. The average amount of ground rent was £65 billed yearly. The lease ran out in 2082. Having 56 years as a residual term we estimated the premium to the landlord for the lease extension to be between £29,500 and £34,000 not including professional charges.

Dorchester case:

Dr T Bailey bought a recently refurbished apartment in Dorchester in January 1999. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical residencies in Dorchester with 100 year plus lease were worth £237,600. The average ground rent payable was £45 billed yearly. The lease finished in 2093. Given that there were 67 years left we approximated the compensation to the freeholder for the lease extension to be between £11,400 and £13,200 plus costs.