Dawlish leases on residential properties are gradually losing 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. Legislation has been in place for sometime now which entitles qualifying Dawlish residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dawlish you would be well advised to investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Dawlish leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Dawlish with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake Dawlish 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.
Seth was the the leasehold proprietor of a high value flat in Dawlish being marketed with a lease of just over fifty eight years left. Seth informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Mr F Miller owned a basement flat in Dawlish in September 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative premises in Dawlish with 100 year plus lease were valued about £260,200. The average amount of ground rent was £65 billed yearly. The lease expired on 28 July 2091. Considering the 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 not including legals.
Mr Owen Kelly moved into a basement apartment in Dawlish in June 1998. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Dawlish with an extended lease were valued about £198,800. The average amount of ground rent was £55 collected every twelve months. The lease elapsed in 2080. Considering the 55 years outstanding we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.