Stop! Your Lease Extension in Dagenham Could Be FREE

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Many leaseholders in Dagenham are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Dagenham has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Top reasons for Dagenham lease extension

Top reasons for lease extension now:

A Dagenham leasehold property depreciates with the years remaining on the lease.

Dagenham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Dagenham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dagenham you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Dagenham leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay

Dagenham property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Dagenham with over one hundred years left on the lease are sometimes referred to as ‘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.

Lending institutions may not loan monies with a short lease

Nearly all banks and building societies will be unwilling to grant a mortgage on a lease with less than seventy years remaining - although this varies between mortgage companies. A purchaser will no doubt find it difficult in obtaining a mortgage and this could result in your Dagenham property becoming difficult to dispose of or to obtain finance on.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
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.
Halifax Minimum 70 years from the date of the mortgage.
Santander

If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest.

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.
 


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.

What makes us experts in Dagenham lease extensions?

The conveyancing solicitors that we work with handle Dagenham 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.

Dagenham Lease Extension Case Summaries:

Elizabeth, Dagenham, London,

Following lengthy correspondence with the landlord of her garden flat in Dagenham, Elizabeth initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was concluded in November 2007. The freeholder’s costs were kept to an absolute minimum.

Dagenham case:

In 2013 we were contacted by Mr and Mrs. K Michel who, having moved into a basement apartment in Dagenham in June 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Dagenham with 100 year plus lease were worth £216,000. The average amount of ground rent was £60 billed yearly. The lease concluded in 2084. Given that there were 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.

Decision in Redbridge

An example of a Lease Extension case for a Dagenham premises is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The unexpired lease term was 61.36 years.