The only way is down when it comes to Dartmouth lease terms. Dartmouth leaseholds that have a remaining term shorter than 80 years will drop in value even faster, and the cost of extending your lease will rise.
Leasehold premises in Dartmouth with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dartmouth valuers.
Blake was the the leasehold owner of a studio apartment in Dartmouth on the market with a lease of a few days over 59 years remaining. Blake on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Blake to invoke his statutory right. Blake obtained expert advice and secured an acceptable resolution informally and sell the property.
Last month we were contacted by Mr and Mrs. L Rogers , who moved into a first floor flat in Dartmouth in November 2009. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparable flats in Dartmouth with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 collected quarterly. The lease ran out in 2088. Considering the 63 years left we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus fees.
Last Summer we were e-mailed by Mr and Mrs. T Cooper , who moved into a recently refurbished apartment in Dartmouth in August 1998. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative premises in Dartmouth with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was on 11 September 2077. Given that there were 52 years left we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.