Dover leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Dover enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dover you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Dover leaseholder with a lease having around 80 years unexpired should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 |
Using our service gives you increased control over the value of your Dover leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the landlord of her purpose-built flat in Dover, Kelsey started the lease extension process as the 80 year threshold was quickly nearing. The transaction was concluded in September 2007. The freeholder’s charges were kept to an absolute minimum.
Last year we were e-mailed by Mrs Lydia Williams , who was assigned a lease of a garden apartment in Dover in June 2008. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical flats in Dover with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed on 16 August 2078. Considering the 52 years left we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 not including expenses.
Mr and Mrs. N André took over the lease of a basement apartment in Dover in March 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Similar premises in Dover with an extended lease were worth £218,000. The mid-range ground rent payable was £45 collected annually. The lease concluded in 2089. Having 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 not including legals.