Dawlish leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Dawlish residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dawlish you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Dawlish with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Dawlish 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.
Subsequent to lengthy negotiations with the landlord of her studio apartment in Dawlish, Naomi started the lease extension process as the eighty year threshold was quickly nearing. The lease extension was concluded in January 2012. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr A Hernández , who was assigned a lease of a one bedroom flat in Dawlish in April 2001. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar properties in Dawlish with an extended lease were in the region of £166,800. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out in 2075. Taking into account 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.
Last Autumn we were e-mailed by Mr Milo Cook , who took over the lease of a recently refurbished flat in Dawlish in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Dawlish with 100 year plus lease were worth £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease expiry date was on 9 October 2095. Given that there were 70 years unexpired we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of fees.