Dartmouth leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Leasehold owners in Dartmouth will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Dartmouth with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The lawyers that we work with handle Dartmouth 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.
Jackson was the the leasehold proprietor of a conversion flat in Dartmouth being sold with a lease of a little over 59 years unexpired. Jackson on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
In 2013 we were contacted by Mr Zachary Murphy who, having was assigned a lease of a basement apartment in Dartmouth in April 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Identical premises in Dartmouth with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished in 2076. Taking into account 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Last October we were e-mailed by Mr and Mrs. K Thompson , who was assigned a lease of a recently refurbished flat in Dartmouth in June 2000. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Comparative premises in Dartmouth with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected annually. The lease concluded in 2096. Having 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.