Unfortunately that a Dulverton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Dulverton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Most flat owners in Dulverton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Dulverton with in excess of one hundred years outstanding 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| 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; |
| 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. |
| 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 |
Lease extensions in Dulverton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Dulverton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the freeholder of her basement apartment in Dulverton, Nicole started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was finalised in June 2015. The landlord’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Ms I King who, having owned a ground floor flat in Dulverton in October 2002. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Dulverton with 100 year plus lease were valued about £246,800. The average amount of ground rent was £60 collected monthly. The lease elapsed on 27 May 2075. Considering the 50 years remaining we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of legals.
Mr and Mrs. E Mercier took over the lease of a first floor apartment in Dulverton in August 2004. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical homes in Dulverton with 100 year plus lease were in the region of £208,200. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated in 2086. Having 61 years remaining we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.