Why you should start your Dalston lease extension

Top reasons for lease extension now:

Increase your lease and increase your Dalston property value

Dalston leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Dalston will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s sensible to be guided by a lawyer during the process.

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

It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.

Lenders may not lend on a short lease

Many mortgage lenders will not lend on a lease with less than seventy years left to run - although this varies between mortgage companies. A purchaser will likely find it difficult in obtaining a mortgage and this could result in your Dalston property becoming difficult to sell or remortgage.

Get in touch with one of our Dalston lease extension solicitors or enfranchisement solicitors

The conveyancers that we work with undertake Dalston 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 lawyer we work with provide it.

Dalston Lease Extension Example Cases:

Alexander, Dalston, London,

Alexander owned a studio flat in Dalston being sold with a lease of fraction over sixty years remaining. Alexander on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Alexander to exercise his statutory right. Alexander procured expert advice and secured satisfactory deal informally and sell the flat.

Dalston case:

Last year we were approach by Mr and Mrs. C Moore , who was assigned a lease of a basement apartment in Dalston in January 2006. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Dalston with an extended lease were valued about £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease ran out on 21 April 2089. Considering the 63 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.