Why you should commence your Dartmouth lease extension

Why you should commence your Dartmouth lease extension today:

A Dartmouth leasehold property depreciates with the years remaining on the lease.

Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dartmouth. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Dartmouth have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. You should give due attention before delaying your Dartmouth lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension

An extended lease has roughly the same value as a freehold

Leasehold residencies in Dartmouth with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not finance a property on a short lease

Mortgage companies are really restricting their approach as regards to properties in Dartmouth with short leases. For instance you might discover that their lending requirements are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash buyer, or try your luck at auction thus narrowing your market.

Why use us for your lease extension in Dartmouth?

Regardless of whether you are a tenant or a freeholder in Dartmouth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dartmouth valuers.

Dartmouth Lease Extension Case Studies:

Teddy, Dartmouth, Devon,

Teddy owned a studio apartment in Dartmouth being marketed with a lease of a few days over sixty years left. Teddy informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and secured satisfactory deal informally and readily saleable.

Dartmouth case:

Mr H Bertrand bought a first floor apartment in Dartmouth in February 2007. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparative residencies in Dartmouth with a long lease were valued around £223,400. The average ground rent payable was £60 billed per annum. The lease lapsed on 12 June 2085. Taking into account 59 years remaining we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of legals.

Dartmouth case:

In 2014 we were contacted by Mrs H Cox who, having completed a newly refurbished apartment in Dartmouth in November 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparable residencies in Dartmouth with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired in 2105. Considering the 79 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.