Main reasons to start your Dorking lease extension

Why you should start your Dorking lease extension today:

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

Dorking leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Dorking residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dorking you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Dorking flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay

Dorking property with a lease extension has roughly the same value as a freehold

Leasehold premises in Dorking with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not finance a property on a short lease

Banks and building societies are really restricting their approach as regards to properties in Dorking with short leases. For instance you may find that their lending criteria are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash purchaser, or try your luck at auction thus reducing your market.

Why use us for your lease extension in Dorking?

Retaining our service will provide you increased control over the value of your Dorking leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Dorking Lease Extension Example Cases:

Andrew, Dorking, Surrey,

Andrew owned a 2 bedroom flat in Dorking on the market with a lease of a few days over 72 years left. Andrew on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Andrew to exercise his statutory right. Andrew obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Dorking case:

Last Summer we were called by Mrs Grace González , who took over the lease of a garden apartment in Dorking in May 2000. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable premises in Dorking with a long lease were worth £200,000. The average ground rent payable was £50 invoiced quarterly. The lease elapsed on 23 February 2104. Taking into account 78 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.

Dorking case:

In 2010 we were called by Mr and Mrs. M Rodríguez who, having acquired a newly refurbished flat in Dorking in January 2001. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Dorking with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed per annum. The lease finished in 2093. Considering the 67 years outstanding we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including professional charges.