With a residential leasehold property in Dagenham, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Leasehold owners in Dagenham with a lease approaching 81 years left should seriously think of extending it sooner rather than later. When a lease has under 80 years remaining, under the relevant statute the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term 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 many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Dagenham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Cameron, came dangerously close to the 80-year mark with the lease on his studio apartment in Dagenham. In buying his home two decades ago, the lease term was of little bearing. by good luck, it dawned on him that he needed to take action soon on a lease extension. Cameron was able to extend his lease just ahead of time in June. Cameron and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had slipped to less than eighty years, the amount would have gone up by a minimum £1,025.
Dr Alicia Roberts purchased a garden flat in Dagenham in February 2001. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparative residencies in Dagenham with 100 year plus lease were in the region of £208,600. The average ground rent payable was £60 collected annually. The lease elapsed in 2083. Taking into account 57 years remaining we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus expenses.
An example of a Lease Extension case for a Dagenham residence 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.