Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Dartmouth Park. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only becomes a problem when the flat or house needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Dartmouth Park have the legal entitlement to extend the lease for a further 90 years under legislation. You should give due deliberation before delaying your Dartmouth Park lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Dartmouth Park,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dartmouth Park valuers.
In recent months Aiden, came critically close to the eighty-year threshold with the lease on his first floor apartment in Dartmouth Park. In buying his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Aiden was able to extend his lease just in the nick of time last March. Aiden and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had slid lower than 80 years, the sum would have escalated by a minimum £1,025.
In 2011 we were phoned by Mr and Mrs. F Lewis who, having purchased a ground floor apartment in Dartmouth Park in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Dartmouth Park with an extended lease were worth £216,000. The average amount of ground rent was £60 billed per annum. The lease concluded in 2083. Having 58 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park residence 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 unexpired term was 64.77 years.