Dartmouth Park residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold premises in Dartmouth Park with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
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. |
Regardless of whether you are a tenant or a landlord in Dartmouth Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dartmouth Park valuers.
Ryan owned a conversion apartment in Dartmouth Park on the market with a lease of just over 61 years unexpired. Ryan informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ryan to exercise his statutory right. Ryan procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. C Richardson who, having moved into a one bedroom apartment in Dartmouth Park in February 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Dartmouth Park with a long lease were worth £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease termination date was on 27 August 2097. Having 73 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension case for a Dartmouth Park premises 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 lease term was 64.77 years.