Dover leases on domestic deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher amount will be due. Leasehold owners in Dover will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold properties in Dover with more than 100 years remaining 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 Dover can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Dover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake owned a high value flat in Dover on the market with a lease of a little over fifty eight years outstanding. Jake informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Dr Mia King was assigned a lease of a garden apartment in Dover in November 2002. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative homes in Dover with a long lease were valued about £260,000. The average ground rent payable was £50 billed annually. The lease finished in 2097. Given that there were 71 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were phoned by Mr and Mrs. J Thomas who, having was assigned a lease of a basement flat in Dover in March 1996. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Dover with an extended lease were valued around £254,200. The average amount of ground rent was £60 collected per annum. The lease lapsed on 14 February 2077. Considering the 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.