As the length of the unexpired term of a Dawlish domestic lease decreases so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner than later. Most flat owners in Dawlish will qualify for this right; however a conveyancer should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Yorkshire 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. |
Lease extensions in Dawlish can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in this area.
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 dealing with Dawlish 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 protracted discussions with the landlord of her purpose-built apartment in Dawlish, Rhiannon commenced the lease extension process just as the lease was coming close to the critical 80-year threshold. The lease extension was concluded in July 2012. The freeholder’s costs were kept to an absolute minimum.
Dr David Parker completed a purpose-built flat in Dawlish in November 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar flats in Dawlish with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed quarterly. The lease concluded on 4 September 2084. Considering the 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 exclusive of professional charges.
Last Winter we were called by Mr and Mrs. L Michel , who acquired a ground floor apartment in Dawlish in September 2011. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable premises in Dawlish with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out on 14 March 2104. Having 79 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.