There is no doubt about it a leasehold property in Dartmouth is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Dartmouth will qualify for this right; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Dartmouth with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Engaging our service will provide you increased control over the value of your Dartmouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Ollie, started to get near to the 80-year threshold with the lease on his two bedroom flat in Dartmouth. In buying his home two decades ago, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Ollie extended the lease just under the wire in May. Ollie and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had dipped lower than 80 years, the premium would have become more exhorbitant by at least £950.
In 2009 we were e-mailed by Mr and Mrs. R Campbell who, having bought a first floor flat in Dartmouth in November 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Identical flats in Dartmouth with an extended lease were in the region of £210,000. The average amount of ground rent was £50 billed yearly. The lease terminated in 2105. Given that there were 80 years left we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2012 we were called by Dr M Bernard who, having purchased a basement apartment in Dartmouth in March 2008. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Dartmouth with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 10 August 2094. Having 69 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.