For anyone whose Dawlish flat is held on a long lease, our message is clear – if you do nothing, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally considered that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Dawlish,the lease extension experts 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.
Harrison was the the leasehold owner of a high value apartment in Dawlish on the market with a lease of a little over fifty eight years remaining. Harrison informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2010 we were contacted by Dr Gabriel Davies who, having owned a ground floor apartment in Dawlish in July 1995. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative premises in Dawlish with 100 year plus lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease finished on 1 April 2090. Considering the 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus fees.
Last Spring we were phoned by Mrs Y Simon , who owned a studio flat in Dawlish in March 2005. The question was if we could estimate the price would be to extend the lease by a further 90 years. Identical homes in Dawlish with a long lease were worth £189,000. The mid-range amount of ground rent was £55 billed monthly. The lease end date was in 2079. Given that there were 53 years left we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 plus expenses.