For those whose Dover flat is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to procure a lease extension.
Leasehold premises in Dover with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Yorkshire 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. |
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 in-depth market knowledge 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.
Last year Isaac, came seriously close to the eighty-year mark with the lease on his leasehold apartment in Dover. In buying his property 18 years ago, the lease term was of little importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Isaac extended the lease at the eleventh hour in August. Isaac and the freeholder ultimately settled on an amount of £6,000 . If he had missed the deadline, the figure would have escalated by at least £975.
Last Christmas we were called by Mr and Mrs. C Reed , who took over the lease of a one bedroom apartment in Dover in June 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Dover with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2089. Having 64 years unexpired we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus expenses.
Mr and Mrs. G Bailey took over the lease of a basement flat in Dover in October 2010. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical flats in Dover with an extended lease were valued around £270,000. The average ground rent payable was £55 collected every twelve months. The lease elapsed on 16 November 2100. Taking into account 75 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.