Dartmouth leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Dartmouth will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Dartmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Ollie was the the leasehold proprietor of a conversion apartment in Dartmouth being sold with a lease of just over fifty eight years remaining. Ollie on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured satisfactory resolution informally and sell the flat.
Mr Cameron Vincent owned a garden flat in Dartmouth in June 1997. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Similar residencies in Dartmouth with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 billed per annum. The lease ran out on 24 January 2092. Having 67 years unexpired we calculated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus expenses.
Last year we were e-mailed by Mrs Poppy Lee , who completed a purpose-built apartment in Dartmouth in September 2004. We are asked if we could approximate the price could be for a 90 year lease extension. Identical residencies in Dartmouth with a long lease were worth £206,200. The average amount of ground rent was £55 invoiced per annum. The lease elapsed in 2081. Taking into account 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.