Dawlish leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Dawlish will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
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 lawyer we work with provide it.
Subsequent to protracted negotiations with the freeholder of her ground floor apartment in Dawlish, Lucy commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was finalised in November 2006. The freeholder’s charges were negotiated to a tad over 450 pounds.
Dr E Allen moved into a newly refurbished apartment in Dawlish in September 2010. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable flats in Dawlish with an extended lease were valued about £216,000. The average ground rent payable was £60 billed monthly. The lease lapsed on 24 August 2084. Having 58 years unexpired we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including legals.
Last year we were phoned by Ms Rebecca Pérez , who took over the lease of a purpose-built flat in Dawlish in September 2008. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative residencies in Dawlish with a long lease were valued around £205,000. The average amount of ground rent was £50 collected every twelve months. The lease expired on 24 August 2104. Having 78 years remaining we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.