As the the remaining lease term of a Dover domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Dover will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Dover with over 100 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dover,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dover valuers.
Trailing lengthy correspondence with the landlord of her garden flat in Dover, Isabella started the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work completed in July 2005. The landlord’s charges were kept to an absolute minimum.
Last Spring we were e-mailed by Mrs Isobel Clarke , who moved into a garden flat in Dover in October 2007. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Identical flats in Dover with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 collected monthly. The lease end date was on 22 March 2093. Having 67 years outstanding we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of expenses.
Last Autumn we were contacted by Mr Liam Bernard , who acquired a one bedroom flat in Dover in March 2009. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable homes in Dover with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 2 May 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.