With a domestic leasehold property in Dorridge, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Anyone in Dorridge with a lease approaching 81 years left should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years left, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Dorridge can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Dorridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jude owned a studio flat in Dorridge being sold with a lease of just over fifty eight years left. Jude informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be payable on a lease extension were Jude to exercise his statutory right. Jude procured expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Spring we were phoned by Mr and Mrs. N López , who bought a first floor apartment in Dorridge in March 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Dorridge with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 collected every twelve months. The lease termination date was in 2103. Considering the 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last September we were approach by Mr S Dupont , who purchased a purpose-built flat in Dorridge in April 2011. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Dorridge with a long lease were worth £265,200. The mid-range ground rent payable was £65 collected quarterly. The lease finished in 2092. Considering the 66 years outstanding we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 not including expenses.