Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dollis Hill. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Dollis Hill have the right to extend the lease for an additional ninety years under statute. Please give careful attention before putting off your Dollis Hill lease extension. Holding off the cost now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Dollis Hill,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dollis Hill valuers.
Off the back of protracted correspondence with the landlord of her basement apartment in Dollis Hill, Alisha started the lease extension process as the eighty year mark was rapidly advancing. The transaction completed in August 2008. The landlord’s charges were restricted to less than 650 GBP.
Dr M Stewart owned a one bedroom apartment in Dollis Hill in April 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Dollis Hill with a long lease were worth £233,200. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2085. Given that there were 61 years unexpired we approximated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Dollis Hill flat is 12 & 12A Deacon Road in May 2010. the Tribunal concluded that the price to be paid for the freehold should be £38,287 This case was in relation to 2 flats. The unexpired term was 65.58 years.