For those whose Dawlish property is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Dawlish with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Dawlish leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold owner of a high value apartment in Dawlish being sold with a lease of a little over fifty eight years remaining. Cameron on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Ms Rachel Fournier purchased a one bedroom flat in Dawlish in April 2001. The dilemma was if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Dawlish with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected every twelve months. The lease finished in 2098. Considering the 72 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
Mr and Mrs. R White acquired a first floor apartment in Dawlish in April 1998. The question was if we could approximate the price could be for a ninety year lease extension. Identical properties in Dawlish with an extended lease were worth £233,200. The average amount of ground rent was £60 billed annually. The lease concluded on 16 April 2087. Given that there were 61 years left we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 plus fees.