The closer a residential lease in Dartmouth Park nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty 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 primary rational as to why you should consider extending without delay. Most flat owners in Dartmouth Park will qualify for this right; that being said a lawyer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Retaining our service will provide you increased control over the value of your Dartmouth Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joseph owned a studio apartment in Dartmouth Park being sold with a lease of a few days over 72 years unexpired. Joseph on an informal basis approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Autumn we were contacted by Dr Rachael Laurent , who moved into a one bedroom apartment in Dartmouth Park in October 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Dartmouth Park with an extended lease were in the region of £208,600. The average amount of ground rent was £60 billed per annum. The lease finished in 2083. Considering the 57 years as a residual term we estimated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park property 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 residue of the current lease was 64.77 years.