When it comes to residential leasehold property in Dagenham, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially when there are less than eighty years remaining. Residents in Dagenham with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under eighty years left, under the current legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Dagenham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dagenham valuers.
Ryan owned a high value flat in Dagenham on the market with a lease of just over sixty years outstanding. Ryan informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ryan to invoke his statutory right. Ryan obtained expert advice and secured an acceptable deal informally and sell the flat.
In 2013 we were e-mailed by Mr and Mrs. T David who, having was assigned a lease of a purpose-built apartment in Dagenham in November 2007. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical residencies in Dagenham with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish on 5 October 2083. Given that there were 58 years outstanding we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of costs.
An example of a Lease Extension decision 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 affected 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.