With a domestic leasehold premises in Dawlish, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Dawlish with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years remaining, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Dawlish with over 100 years remaining 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 home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Dawlish,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dawlish valuers.
Gabriel owned a high value flat in Dawlish on the market with a lease of a few days over 72 years outstanding. Gabriel on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Christmas we were contacted by Mr M King , who moved into a ground floor flat in Dawlish in April 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative properties in Dawlish with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed on 1 July 2099. Given that there were 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2011 we were phoned by Mr Jack Martin who, having took over the lease of a basement apartment in Dawlish in July 2004. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Identical properties in Dawlish with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease terminated on 27 August 2088. Having 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of expenses.