Dawlish Lease Extension - Free Consultation

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Top reasons for Dawlish lease extension


Main reasons to start your Dawlish lease extension today:

A Dawlish lease depreciates with the years remaining on the lease.

For those whose Dawlish property is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to lend with a short lease

Nearly all banks and building societies will not grant a mortgage on a lease with under 70 years remaining - although this varies from lender to lender. A purchaser will undoubtedly encounter difficulties to obtain a mortgage and this will result in your Dawlish property becoming difficult to dispose of or to obtain finance on.

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.
Bank of Scotland Minimum 70 years from the date of the mortgage.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:

• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Dawlish lease extensions?

Irrespective of whether you are a tenant or a landlord in Dawlish,the lease extension experts 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 Dawlish valuers.

Dawlish Lease Extension Case Studies:

Joshua, Dawlish, Devon,

Joshua was the the leasehold owner of a 2 bedroom apartment in Dawlish being sold with a lease of just over fifty eight years remaining. Joshua on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Joshua to invoke his statutory right. Joshua procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.

Dawlish case:

In 2009 we were approached by Dr Eliot Hernández who, having moved into a newly refurbished apartment in Dawlish in March 2007. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar flats in Dawlish with an extended lease were valued around £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2099. Taking into account 74 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.

Dawlish case:

Last Spring we were phoned by Dr O Morris , who completed a basement flat in Dawlish in November 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Identical residencies in Dawlish with a long lease were worth £243,000. The average ground rent payable was £65 invoiced quarterly. The lease ended on 3 May 2088. Considering the 63 years outstanding we approximated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.