The value of Dartmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 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 equivalent in value to a freehold for decades to come.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Halifax|| Minimum 70 years from the date of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|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.|
Engaging our service will provide you increased control over the value of your Dartmouth leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Mason, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Dartmouth. In buying his property two decades ago, the lease term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Mason was able to extend his lease just in the nick of time last May. Mason and the landlord who owned the flat above ultimately agreed on the final figure of £5,500 . If he had missed the deadline, the amount would have become more costly by a minimum £1,075.
Last Winter we were approach by Dr J Evans , who owned a studio flat in Dartmouth in May 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Dartmouth with an extended lease were valued around £189,000. The mid-range amount of ground rent was £55 collected per annum. The lease termination date was in 2074. Having 53 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including legals.
Mr and Mrs. S Robinson was assigned a lease of a one bedroom apartment in Dartmouth in January 2009. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Dartmouth with an extended lease were worth £290,000. The average ground rent payable was £45 collected every twelve months. The lease end date was on 19 November 2094. Considering the 73 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.