Dartmouth leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Dartmouth will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Dartmouth can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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.
Arthur owned a 2 bedroom apartment in Dartmouth being marketed with a lease of fraction over 72 years left. Arthur informally contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Arthur to exercise his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last month we were contacted by Mr T Rivera , who was assigned a lease of a one bedroom flat in Dartmouth in July 1998. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Dartmouth with a long lease were valued about £205,000. The average amount of ground rent was £50 billed per annum. The lease terminated on 3 August 2105. Taking into account 79 years remaining we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. V Bonnet bought a one bedroom flat in Dartmouth in June 2005. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar homes in Dartmouth with an extended lease were worth £275,000. The average ground rent payable was £65 invoiced quarterly. The lease terminated on 21 September 2094. Considering the 68 years outstanding we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.