When it comes to long leasehold property in Dartmouth Park, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially once there are less than 80 years left. Anyone in Dartmouth Park with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years remaining, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Dartmouth Park with over one hundred years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Dartmouth Park leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Teddy owned a studio flat in Dartmouth Park being sold with a lease of a few days over 72 years unexpired. Teddy informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert legal guidance and secured an acceptable resolution informally and sell the flat.
Mr and Mrs. H Rose owned a one bedroom apartment in Dartmouth Park in May 1995. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Identical homes in Dartmouth Park with a long lease were worth £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 22 August 2099. Having 73 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension decision for a Dartmouth Park residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case was in relation to 1 flat. The unexpired term was 64.77 years.