Top reasons for Dore lease extension

Why you should commence your Dore lease extension today:

A Dore leasehold property depreciates with the years remaining on the lease.

The market value of Dore leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than 80 years

An extended lease has roughly the same value as a freehold

Leasehold residencies in Dore with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 service charges merit it.

Lenders may decide not to grant a mortgage on a short lease

The definition of a short lease varies by mortgage company, yet banks and building societies start to become nervous at around 75 years. This may cause difficulties as and when you come to dispose of or refinance your property as it will be practically unmortgageable. You may not have an imminent desire to sell but when you do your buyer will have to hold off for two years before they can exercise the right to a an extension to the lease.

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

Engaging our service will provide you enhanced 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 conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dore Lease Extension Example Cases:

Kate, Dore, South Yorkshire,

After protracted discussions with the landlord of her leasehold flat in Dore, Kate initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension completed in February 2005. The freeholder’s fees were kept to an absolute minimum.

Dore case:

Last year we were called by Ms Isabella Phillips , who acquired a basement flat in Dore in October 2010. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar homes in Dore with 100 year plus lease were valued about £171,800. The average amount of ground rent was £55 collected per annum. The lease elapsed in 2076. Having 50 years left we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.

Dore case:

In 2009 we were phoned by Mr Jacob Cooper who, having took over the lease of a one bedroom apartment in Dore in August 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical premises in Dore with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced yearly. The lease lapsed on 4 October 2096. Taking into account 70 years left we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.