When it comes to domestic leasehold premises in Dartmouth Park, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy 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 becomes disproportionately greater particularly when there are fewer than 80 years remaining. Anyone in Dartmouth Park with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once the lease term has fewer than eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Dartmouth Park valuers.
Caleb was the the leasehold owner of a studio flat in Dartmouth Park being marketed with a lease of just over fifty eight years left. Caleb informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Caleb to exercise his statutory right. Caleb obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2012 we were approached by Dr Y Rose who, having acquired a one bedroom flat in Dartmouth Park in April 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Dartmouth Park with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded in 2096. Considering the 71 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 64.77 years.