Dawlish Lease Extension - Free Consultation

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Top reasons for Dawlish lease extension

Top reasons for lease extension now:

Increase your lease and increase your Dawlish property value

Dawlish leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Dawlish tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Dawlish you must investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Dawlish leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay

An extended lease has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.

Lenders may not finance a property with a short lease

Almost all banks and building societies insist on a lengthy amount of time left on a leasehold property before they will consider lending on it. Regardless of whether you need a mortgage, you should be aware that it is probable that someone wishing to purchase your property in the future might well do, so in the event that they are unable to secure a mortgage, then the value of your property will likely be adversely impacted. In the last decade most mortgage lenders have increased the required minimum lease length that they are willing to accept

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.
Barclays plc Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).

Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.

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.
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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Get in touch with one of our Dawlish lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a freeholder in Dawlish,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dawlish valuers.

Dawlish Lease Extension Case Studies:

Gabriel, Dawlish, Devon

Two years ago Gabriel, came perilously near to the eighty-year threshold with the lease on his leasehold flat in Dawlish. Having purchased his property two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Gabriel extended the lease just ahead of time last June. Gabriel and the landlord who owned the flat above ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have increased by at least £950.

Dawlish case:

In 2013 we were approached by Mr C Mitchell who, having owned a basement flat in Dawlish in September 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Similar premises in Dawlish with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 invoiced per annum. The lease ended on 14 April 2097. Having 74 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.

Dawlish case:

Mr R Gómez purchased a newly refurbished flat in Dawlish in January 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Dawlish with 100 year plus lease were in the region of £243,000. The average ground rent payable was £65 invoiced annually. The lease ended in 2086. Taking into account 63 years left we approximated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus professional charges.