The value of Dartmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is below than 80 years
Leasehold residencies in Dartmouth with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Dartmouth leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her studio flat in Dartmouth, Daisy started the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in November 2011. The freeholder’s costs were restricted to approximately 700 GBP.
Ms Amy Reed purchased a ground floor apartment in Dartmouth in October 2011. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Dartmouth with 100 year plus lease were in the region of £189,000. The average amount of ground rent was £55 billed monthly. The lease expired in 2078. Taking into account 53 years unexpired we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of legals.
Last Summer we were contacted by Ms Katherine Morgan , who owned a first floor apartment in Dartmouth in July 1996. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar premises in Dartmouth with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease ran out in 2098. Considering the 73 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.