Dartmouth Park leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Dartmouth Park will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Dartmouth Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Adam, came perilously close to the 80-year mark with the lease on his first floor apartment in Dartmouth Park. In buying his flat two decades ago, the lease term was of no importance. Luckily, he realised he needed to take action soon on Extending the lease. Adam was able to extend his lease just under the wire in April. Adam and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had slid to less than eighty years, the sum would have increased by a minimum £1,100.
In 2012 we were approached by Mr and Mrs. W Lewis who, having moved into a ground floor flat in Dartmouth Park in May 1995. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Dartmouth Park with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease ran out in 2077. Given that there were 52 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Dartmouth Park property 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 related to 1 flat. The unexpired residue of the current lease was 64.77 years.