It’s an underpublicised truth that a Dulverton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Dulverton property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Dulverton will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Dulverton,the lease extension experts 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 Dulverton valuers.
Max owned a studio apartment in Dulverton being marketed with a lease of just over 61 years left. Max informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Max to invoke his statutory right. Max obtained expert advice and secured satisfactory deal informally and sell the property.
Dr Kai Sánchez owned a one bedroom apartment in Dulverton in August 2011. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative flats in Dulverton with an extended lease were valued about £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease terminated in 2101. Given that there were 76 years unexpired we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Mrs Sian Wright bought a basement flat in Dulverton in October 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Dulverton with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 1 March 2081. Taking into account 56 years unexpired we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 not including legals.