When it comes to long leasehold premises in Dartmouth Park, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years left. Residents in Dartmouth Park with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant legislation the freeholder can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Dartmouth Park,the lease extension solicitors 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 Dartmouth Park valuers.
Caleb owned a high value flat in Dartmouth Park being marketed with a lease of a few days over 59 years remaining. Caleb informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were contacted by Mr Felix Carter who, having purchased a purpose-built flat in Dartmouth Park in June 2012. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Dartmouth Park with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed on 4 September 2079. Taking into account 53 years remaining we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park property is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case was in relation to 1 flat. The unexpired lease term was 64.77 years.