Main reasons to commence your Dalston lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3> Top reasons for lease extension now:
</h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/dalston">Dalston</a> leasehold property depreciates with the years remaining on the lease.
</h4>
<p> The re-sale value of a leasehold property in Dalston depends on how many years the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the 80 year cut off point. Leasehold Reform legislation enables Dalston qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension. <h4>Dalston property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
<h4>Lending institutions may not loan monies on a short lease</h4> The definition of a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This will be problematic as and when you wish to sell or refinance your property as it will be practically unmortgageable. Even though you may not have an imminent intention to sell but when you do your purchaser will need to wait 2 years before they can start the legal procedures for a lease extension.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Bank of Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
</tr>
<tr>
<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage.
</tr>
<tr>
<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
</tr>
<tr>
<td>Virgin</td>
<td> 85 years at the time of completion. If it's less, we require it to be extended on or before completion.
</tr>
</tbody>
</table>
</div>
</div>
<h4>
What makes us experts in Dalston lease extensions?
</h4>
<p> Retaining our service will provide you better control over the value of your Dalston leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell.
The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Dalston Lease Extension Case Summaries:
</h4>
<h5> Ali, Dalston, London</h5>
<p> Half a year ago Ali, came seriously near to the eighty-year threshold with the lease on his basement flat in Dalston. Having purchased his flat 19 years previously, the length of the lease was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Ali extended the lease just under the wire in August. Ali and the landlord ultimately settled on the final figure of £5,000 . If he had missed the deadline, the figure would have increased by a minimum £900.
<h5>Dalston case:</h5>
<p>
In 2014 we were phoned by Dr K Turner who, having bought a ground floor flat in Dalston in February 2008. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Identical premises in Dalston with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 collected quarterly. The lease termination date was on 24 January 2094. Given that there were 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
<div> <h5>Decision in Hackney</h5>
<p>
An example of a Freehold Enfranchisement decision for a Dalston residence is
150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500.
This case affected 4 flats. The unexpired term as at the valuation date was 90 (or thereabouts).
</p>
</div>
</div>