When it comes to residential leasehold property in Dartmouth Park, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are fewer than eighty years left. Residents in Dartmouth Park with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has fewer than 80 years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Dartmouth Park with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Dartmouth Park can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Dartmouth Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Toby, started to get near to the 80-year threshold with the lease on his first floor apartment in Dartmouth Park. Having bought his property 18 years ago, the lease term was of minimal concern. As luck would have it, he noticed he needed to take action soon on a lease extension. Toby was able to extend his lease just in the nick of time in July. Toby and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slipped lower than 80 years, the price would have increased by a minimum £1,000.
Mr and Mrs. D Davis owned a purpose-built flat in Dartmouth Park in July 1999. The dilemma was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable premises in Dartmouth Park with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2103. Given that there were 77 years outstanding we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
An example of a Lease Extension case 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 related to 1 flat. The unexpired term as at the valuation date was 64.77 years.