Dawlish leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Dawlish enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Dawlish you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Dawlish leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold proprietor of a 2 bedroom flat in Dawlish on the market with a lease of fraction over 59 years remaining. Toby on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Last year we were approach by Dr Isabella Jackson , who completed a one bedroom apartment in Dawlish in March 2000. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparative homes in Dawlish with 100 year plus lease were valued around £206,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 25 May 2082. Given that there were 56 years remaining we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.
In 2012 we were phoned by Mr and Mrs. Y Lefèvre who, having moved into a garden flat in Dawlish in March 1995. The dilemma was if we could approximate the price would be for a 90 year lease extension. Identical residencies in Dawlish with an extended lease were worth £300,000. The average amount of ground rent was £50 billed yearly. The lease concluded on 15 April 2102. Taking into account 76 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.