On the balance of probabilities if you own a flat in Dartmouth you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dartmouth can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
In the wake of eight months of lengthy negotiations with the freeholder of her leasehold apartment in Dartmouth, Hannah started the lease extension process as the 80 year threshold was rapidly coming. The lease extension was concluded in May 2008. The freeholder’s fees were restricted to slightly above five hundred pounds.
In 2014 we were called by Mr K Martin who, having took over the lease of a studio apartment in Dartmouth in February 2004. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparable homes in Dartmouth with a long lease were worth £240,600. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2088. Considering the 62 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
Last year we were contacted by Mrs J Davies , who bought a first floor flat in Dartmouth in January 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparable properties in Dartmouth with a long lease were worth £174,200. The mid-range ground rent payable was £55 collected monthly. The lease finished in 2077. Taking into account 51 years unexpired we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.