Why you should start your Dawlish lease extension

Why you should start your Dawlish lease extension today:

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

The value of Dawlish leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than eighty years

An extended lease has roughly the same value as a freehold

Leasehold properties in Dawlish with over 100 years outstanding 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Banks and Building Societies may decide not to lend on a short lease

The propensity since the credit crunch has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has meant the unexpired lease term required by mortgage companies has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Dawlish lease extension solicitors or enfranchisement solicitors

The lawyers 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 conveyancer we work with provide it.

Dawlish Lease Extension Case Studies:

Harrison, Dawlish, Devon,

Harrison was the the leasehold proprietor of a conversion flat in Dawlish on the market with a lease of a little over 61 years left. Harrison informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.

Dawlish case:

Mr and Mrs. V Petit was assigned a lease of a basement apartment in Dawlish in October 2001. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical properties in Dawlish with an extended lease were worth £257,800. The average ground rent payable was £65 billed annually. The lease came to a finish on 13 October 2091. Taking into account 65 years unexpired we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.

Dawlish case:

Mr Hunter White bought a ground floor flat in Dawlish in September 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Dawlish with 100 year plus lease were valued around £191,400. The average amount of ground rent was £55 invoiced per annum. The lease terminated on 12 September 2080. Taking into account 54 years remaining we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus legals.