Dartmouth Park 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 gets more expensive. The majority of owners of residential leasehold property in Dartmouth Park enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dartmouth Park you really ought to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Dartmouth Park,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dartmouth Park valuers.
Gabriel was the the leasehold owner of a high value flat in Dartmouth Park on the market with a lease of fraction over fifty eight years unexpired. Gabriel informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Last month we were e-mailed by Ms Leah Garcia , who took over the lease of a garden flat in Dartmouth Park in August 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Dartmouth Park with an extended lease were valued about £295,000. The average ground rent payable was £45 collected per annum. The lease came to a finish on 4 May 2100. Having 75 years unexpired we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park premises is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case affected 1 flat. The unexpired term was 64.77 years.