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 your lease becomes more expensive. It is the case that most Dartmouth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Dartmouth you would be well advised to check if your lease has between seventy and 90 years left. There are good reasons why a Dartmouth leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold residencies in Dartmouth with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dartmouth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dartmouth valuers.
Last Winter Aarav, came precariously close to the 80-year threshold with the lease on his garden flat in Dartmouth. In buying his flat two decades ago, the lease term was of minimal importance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Aarav was able to extend his lease just in the nick of time last April. Aarav and the freeholder subsequently settled on the final figure of £5,000 . If the lease had dipped to less than eighty years, the amount would have gone up by a minimum £925.
Dr Chelsea White owned a one bedroom flat in Dartmouth in November 1995. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Similar homes in Dartmouth with an extended lease were valued around £174,200. The average ground rent payable was £55 billed annually. The lease ended in 2077. Given that there were 51 years left we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.
Ms Stephanie Thomas purchased a first floor apartment in Dartmouth in September 2003. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical homes in Dartmouth with a long lease were valued about £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease concluded on 22 November 2097. Considering the 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.