Main reasons to commence your Dorking lease extension

Top reasons for lease extension now:

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

Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Dorking. Inevitably, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Dorking have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due consideration before putting off your Dorking lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease

Dorking property with a lease extension is almost the same value as a freehold

Leasehold properties in Dorking with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.

Mortgage lenders may decide not to finance a property on a short lease

The trend since 2008 has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Dorking?

Engaging our service gives you increased control over the value of your Dorking 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dorking Lease Extension Example Cases:

Lily, Dorking, Surrey,

Following unsuccessful correspondence with the landlord of her studio flat in Dorking, Lily commenced the lease extension process as the eighty year deadline was rapidly nearing. The legal work completed in January 2015. The landlord’s costs were kept to an absolute minimum.

Dorking case:

Dr Harry White completed a garden apartment in Dorking in April 1995. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable flats in Dorking with an extended lease were in the region of £218,400. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 20 January 2085. Taking into account 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus costs.

Dorking case:

Last month we were approach by Mrs J Brown , who owned a garden flat in Dorking in October 1999. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable homes in Dorking with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 12 August 2105. Taking into account 79 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.