Unfortunately that a Dartmouth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Dartmouth property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Dartmouth will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Dartmouth can be a difficult process. We recommend you obtain professional help 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 dealing with Dartmouth 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 Tyler, came perilously close to the eighty-year mark with the lease on his two bedroom flat in Dartmouth. Having purchased his home twenty years previously, the length of the lease was of minimal relevance. Luckily, he realised he needed to take action soon on Extending the lease. Tyler arranged for a lease extension just under the wire in January. Tyler and the freeholder via the managing agents subsequently agreed on an amount of £5,500 . If the lease had dropped to less than eighty years, the sum would have become more exhorbitant by at least £1,100.
Mr Y Moreau moved into a first floor apartment in Dartmouth in August 2004. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Similar residencies in Dartmouth with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2093. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 not including fees.
Dr Daniel Cook took over the lease of a one bedroom apartment in Dartmouth in February 2007. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative properties in Dartmouth with a long lease were valued around £206,200. The mid-range amount of ground rent was £55 collected annually. The lease expired on 13 October 2082. Considering the 56 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.