Dartmouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Dartmouth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dartmouth you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Dartmouth leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Dartmouth with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Halifax | |
| Leeds Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Dartmouth can be a difficult process. We recommend you secure 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 procuring Dartmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy negotiations with the freeholder of her garden flat in Dartmouth, Jennifer initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The legal work was finalised in August 2008. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. L Gómez , who acquired a garden apartment in Dartmouth in May 1996. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical properties in Dartmouth with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 billed monthly. The lease expired on 1 September 2089. Having 63 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of expenses.
Last Winter we were e-mailed by Dr Toby Cox , who purchased a first floor flat in Dartmouth in June 2001. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable premises in Dartmouth with an extended lease were valued around £181,600. The average ground rent payable was £55 collected monthly. The lease concluded in 2078. Taking into account 52 years unexpired we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus costs.