When it comes to long leasehold property in Dosthill, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years remaining. Anyone in Dosthill with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has below eighty years outstanding, under the current statute the landlord can calculate and charge a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dosthill can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 dealing with Dosthill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Eli, came dangerously close to the eighty-year mark with the lease on his two bedroom apartment in Dosthill. Having purchased his flat twenty years ago, the lease term was of little bearing. Thankfully, he noticed he needed to take steps soon on a lease extension. Eli arranged for a lease extension just under the wire in September. Eli and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had fallen lower than eighty years, the price would have escalated by at least £950.
Mr M García acquired a recently refurbished apartment in Dosthill in June 2001. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative flats in Dosthill with a long lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed in 2096. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be between £10,500 and £12,000 plus professional charges.
In 2009 we were approached by Dr D Nelson who, having moved into a basement flat in Dosthill in March 2001. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable properties in Dosthill with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 invoiced annually. The lease ended in 2076. Given that there were 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of expenses.