The only way is down when it comes to Dawlish lease terms. Dawlish flats that have a remaining term shorter than eighty years will drop in market price at a rapid rate, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Dawlish leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Logan, came perilously close to the eighty-year threshold with the lease on his basement flat in Dawlish. In buying his property two decades ago, the unexpired term was of minimal relevance. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Logan arranged for a lease extension at the eleventh hour last June. Logan and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had dipped below 80 years, the premium would have gone up by a minimum £1,050.
Ms U Davies took over the lease of a first floor flat in Dawlish in November 2008. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Dawlish with an extended lease were valued about £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease expired in 2078. Taking into account 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Last Spring we were phoned by Mrs Ella Hernández , who completed a studio flat in Dawlish in January 2007. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical homes in Dawlish with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease lapsed on 5 April 2098. Taking into account 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.