The value of Dawlish leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than eighty years
Leasehold premises in Dawlish with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the freeholder of her first floor flat in Dawlish, Jasmine initiated the lease extension process as the 80 year deadline was swiftly advancing. The lease extension completed in March 2011. The freeholder’s fees were negotiated to slightly above 700 GBP.
Last Christmas we were approach by Dr Rhiannon Hill , who bought a purpose-built flat in Dawlish in June 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Dawlish with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed in 2103. Considering the 78 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
Ms J Bonnet acquired a basement apartment in Dawlish in November 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Dawlish with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 billed every twelve months. The lease elapsed on 2 January 2092. Given that there were 67 years remaining we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.