As the the remaining lease term of a Dartmouth domestic lease lessens so does its value and therefore the value of your property. If the residual term has, over one hundred years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Dartmouth will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Dartmouth 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 conveyancer we work with provide it.
Isaac was the the leasehold proprietor of a conversion apartment in Dartmouth on the market with a lease of fraction over 72 years remaining. Isaac informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Isaac to exercise his statutory right. Isaac procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last November we were e-mailed by Mr and Mrs. U Nelson , who took over the lease of a ground floor flat in Dartmouth in June 2001. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Dartmouth with 100 year plus lease were valued about £184,000. The average ground rent payable was £55 billed per annum. The lease concluded in 2077. Having 53 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Last month we were phoned by Mr F Turner , who moved into a one bedroom flat in Dartmouth in March 2011. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Dartmouth with a long lease were worth £290,000. The average ground rent payable was £45 invoiced yearly. The lease expired on 8 August 2097. Considering the 73 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.