It’s an underpublicised truth that a Dartmouth Park residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Dartmouth Park property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Dartmouth Park will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Dartmouth Park with over 100 years outstanding on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Dartmouth Park,the lease extension solicitors that we work with will always be happy 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.
Last year Noah, started to get near to the eighty-year threshold with the lease on his leasehold flat in Dartmouth Park. Having purchased his home 18 years ago, the unexpired term was of little importance. Fortunately, he noticed he needed to take action soon on Extending the lease. Noah was able to extend his lease just under the wire last September. Noah and the freeholder eventually agreed on a premium of £6,000 . If the lease had dipped lower than 80 years, the price would have escalated by at least £1,050.
In 2009 we were approached by Mrs Chloe Stewart who, having took over the lease of a one bedroom apartment in Dartmouth Park in October 2003. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Dartmouth Park with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed in 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park flat 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 related to 1 flat. The remaining number of years on the lease was 64.77 years.