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 allowing qualifying Dartmouth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dartmouth you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Dartmouth with more than one hundred years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Virgin | |
| Yorkshire Building Society |
Lease extensions in Dartmouth can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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.
Callum owned a conversion apartment in Dartmouth on the market with a lease of just over 59 years left. Callum informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Spring we were e-mailed by Mr and Mrs. P Brooks , who purchased a basement flat in Dartmouth in November 2007. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative premises in Dartmouth with a long lease were worth £198,800. The average ground rent payable was £55 invoiced quarterly. The lease termination date was on 22 February 2081. Taking into account 55 years outstanding we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.
Last Autumn we were called by Dr P Wright , who took over the lease of a garden flat in Dartmouth in May 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Dartmouth with a long lease were in the region of £295,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 21 January 2101. Taking into account 75 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.