Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Dartmouth. Clearly, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house has 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 extend the lease. Qualifying long lease owners in Dartmouth have the right to extend the lease for an additional ninety years in accordance with legislation. Please give careful deliberation before delaying your Dartmouth lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
Leasehold premises in Dartmouth with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Dartmouth,the lease extension lawyers that we work with will always be prepared 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 valuers.
Trailing lengthy discussions with the freeholder of her studio apartment in Dartmouth, Eleanor commenced the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction was concluded in May 2011. The landlord’s fees were restricted to under 450 GBP.
Ms Jennifer Hill completed a basement flat in Dartmouth in January 2012. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Dartmouth with an extended lease were worth £201,200. The mid-range amount of ground rent was £55 collected per annum. The lease concluded in 2080. Having 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 plus legals.
Last month we were approach by Dr Lily Nelson , who was assigned a lease of a one bedroom apartment in Dartmouth in April 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Dartmouth with an extended lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2100. Given that there were 76 years left we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.