Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dover. Clearly, the term of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Dover have the right to extend the lease for an additional 90 years under legislation. Please give due attention before putting off your Dover lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
Leasehold properties in Dover with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in Dover can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 procuring Dover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali was the the leasehold proprietor of a conversion apartment in Dover on the market with a lease of just over 59 years unexpired. Ali informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last month we were contacted by Dr Arthur Fournier , who completed a purpose-built apartment in Dover in March 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Dover with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2104. Having 78 years unexpired we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Autumn we were e-mailed by Dr Jackson Turner , who was assigned a lease of a purpose-built apartment in Dover in October 2000. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable properties in Dover with 100 year plus lease were worth £191,000. The average ground rent payable was £65 invoiced quarterly. The lease ran out in 2084. Considering the 58 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of expenses.