As the the remaining lease term of a Dawlish residential lease decreases so does its value and therefore the value of your property. Where the lease has, beyond 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Dawlish will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Dawlish with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 will provide you increased control over the value of your Dawlish leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her two bedroom flat in Dawlish, Amy started the lease extension process just as the lease was coming close to the critical eighty-year deadline. The lease extension was finalised in April 2012. The freeholder’s fees were negotiated to about 550 pounds.
Last September we were approach by Dr Caleb Green , who acquired a one bedroom apartment in Dawlish in October 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar homes in Dawlish with a long lease were valued around £257,800. The average amount of ground rent was £65 invoiced yearly. The lease elapsed on 22 February 2090. Taking into account 65 years left we calculated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including professional charges.
Last month we were phoned by Ms Morgan Mitchell , who bought a garden apartment in Dawlish in March 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Dawlish with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 invoiced yearly. The lease concluded in 2079. Considering the 54 years unexpired we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of legals.