With a residential leasehold premises in Dartmouth Park, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Anyone in Dartmouth Park with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has less than eighty years left, under the current legislation the freeholder can calculate and demand a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Dartmouth Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
16 months ago Freddie, started to get close to the 80-year mark with the lease on his leasehold flat in Dartmouth Park. In buying his flat 18 years ago, the unexpired term was of minimal concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Freddie arranged for a lease extension just in the nick of time last September. Freddie and the freeholder eventually agreed on a premium of £6,000 . If the lease had gone to less than eighty years, the amount would have gone up by at least £875.
Mr and Mrs. M Lee purchased a studio apartment in Dartmouth Park in March 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative properties in Dartmouth Park with an extended lease were worth £300,000. The average amount of ground rent was £50 invoiced annually. The lease ran out in 2102. Given that there were 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension decision for a Dartmouth Park flat 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 remaining number of years on the lease was 64.77 years.