Why you should commence your Dover lease extension

Main reasons to start your Dover lease extension today:

A Dover lease depreciates with the years remaining on the lease.

Dover residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.

An extended lease is almost the same value as a freehold

Leasehold properties in Dover with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.

Mortgage lenders may not grant a mortgage with a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to get concerned at around 75 years. This will be problematic once you wish to sell or refinance your flat as it will be practically unmortgageable. Even though you might have no imminent plan to sell but when you do your buyer will have to hold off for two years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Dover lease extension solicitors or enfranchisement solicitors

Engaging our service will provide you increased control over the value of your Dover leasehold, as your property will be more valuable and saleable in terms of 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.

Dover Lease Extension Example Cases:

Isabel, Dover, Kent,

Following lengthy negotiations with the landlord of her basement apartment in Dover, Isabel commenced the lease extension process as the 80 year deadline was rapidly coming. The transaction was concluded in May 2005. The freeholder’s costs were kept to an absolute minimum.

Dover case:

Dr O Patel acquired a first floor flat in Dover in November 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Dover with a long lease were valued about £191,000. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated in 2084. Considering the 58 years outstanding we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including legals.

Dover case:

Dr Ollie Lewis owned a newly refurbished flat in Dover in April 2010. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Similar premises in Dover with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2095. Considering the 69 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.