Why you should start your Dartmouth Park lease extension

Top reasons for lease extension now:

A Dartmouth Park lease depreciates with the years remaining on the lease.

It’s a harsh truth that a Dartmouth Park residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Dartmouth Park property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Most leasehold owners in Dartmouth Park will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.

Dartmouth Park property with a lease extension has roughly the same value as a freehold

Leasehold properties in Dartmouth Park with more than 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.

Mortgage lenders will not loan monies on a short lease

Almost all banks and building societies will be unwilling to lend on a lease with less than seventy years unexpired - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this could result in your Dartmouth Park property being difficult to sell or to obtain finance on.

What makes us experts in Dartmouth Park lease extensions?

The conveyancers that we work with procure Dartmouth Park 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 conveyancing solicitor we work with provide it.

Dartmouth Park Lease Extension Example Cases:

Rory, Dartmouth Park, North London,

Rory owned a conversion apartment in Dartmouth Park on the market with a lease of a little over 59 years unexpired. Rory on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Rory to invoke his statutory right. Rory procured expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.

Dartmouth Park case:

In 2010 we were called by Mr and Mrs. P Allen who, having was assigned a lease of a studio apartment in Dartmouth Park in March 2000. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Dartmouth Park with an extended lease were in the region of £166,800. The mid-range ground rent payable was £50 collected annually. The lease end date was in 2076. Considering the 50 years remaining we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of fees.