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. If lease term dips under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Dartmouth will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Dartmouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Owen, came critically near to the 80-year mark with the lease on his one bedroom flat in Dartmouth. In buying his home two decades ago, the lease term was of minimal importance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Owen was able to extend his lease at the eleventh hour in March. Owen and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £875.
In 2013 we were phoned by Mr and Mrs. Y Sharif who, having was assigned a lease of a ground floor flat in Dartmouth in May 2002. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparative properties in Dartmouth with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 collected monthly. The lease elapsed in 2093. Taking into account 68 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including costs.
Mr and Mrs. H Thomas purchased a one bedroom apartment in Dartmouth in August 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Dartmouth with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 billed yearly. The lease lapsed on 18 May 2082. Considering the 57 years unexpired we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.