The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Dore can extend the lease for an additional ninety years under legislation. Please think carefully before delaying your Dore lease extension. Putting off the costs today simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Dore with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Dore leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Luke was the the leasehold owner of a high value flat in Dore on the market with a lease of a little over fifty eight years outstanding. Luke on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Luke to invoke his statutory right. Luke obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were phoned by Mr and Mrs. T Lefèvre , who took over the lease of a first floor apartment in Dore in March 1999. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical flats in Dore with a long lease were valued about £208,600. The average ground rent payable was £60 invoiced annually. The lease ran out in 2083. Having 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including legals.
Last Autumn we were approach by Mr A Richardson , who purchased a garden flat in Dore in October 2000. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Dore with an extended lease were worth £200,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 20 November 2103. Considering the 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.