The market value of Dulverton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
Leasehold premises in Dulverton with over one hundred 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 property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Dulverton can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Dulverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Evan was the the leasehold owner of a high value apartment in Dulverton on the market with a lease of a little over 61 years outstanding. Evan informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan obtained expert legal guidance and secured an acceptable deal informally and sell the flat.
Last Christmas we were e-mailed by Mr and Mrs. I Gray , who was assigned a lease of a one bedroom flat in Dulverton in April 2000. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative flats in Dulverton with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish in 2082. Given that there were 57 years outstanding we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
Mr E Brooks took over the lease of a first floor flat in Dulverton in February 2008. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar homes in Dulverton with a long lease were worth £245,000. The mid-range ground rent payable was £50 billed per annum. The lease termination date was on 3 November 2093. Taking into account 68 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.