When it comes to residential leasehold premises in Dorking, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Anyone in Dorking with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Dorking can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with Dorking lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dylan, came precariously near to the 80-year threshold with the lease on his ground floor flat in Dorking. Having bought his flat two decades ago, the lease term was of no relevance. Luckily, he noticed he needed to take action soon on a lease extension. Dylan extended the lease at the eleventh hour in July. Dylan and the landlord who owned the flat above in the end settled on sum of £5,000 . If he had missed the deadline, the sum would have increased by at least £925.
Mr and Mrs. Y Cook acquired a first floor flat in Dorking in February 2012. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative premises in Dorking with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2099. Taking into account 73 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Last Spring we were contacted by Mr and Mrs. Y Brooks , who was assigned a lease of a one bedroom apartment in Dorking in May 2007. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Dorking with a long lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 10 November 2088. Having 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including fees.