There is no doubt about it a leasehold flat or house in Dore is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Dore will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Dore with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 also be not less than 75 years 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. |
Using our service will provide 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 want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Max owned a conversion flat in Dore on the market with a lease of a few days over 72 years remaining. Max informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr P Taylor purchased a ground floor apartment in Dore in March 2010. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable premises in Dore with a long lease were valued around £250,400. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed on 19 May 2090. Having 64 years left we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including professional charges.
In 2012 we were e-mailed by Dr Ashleigh Bertrand who, having purchased a first floor flat in Dore in February 2004. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative residencies in Dore with a long lease were valued about £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease terminated in 2079. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including fees.