With a domestic leasehold property in Dalston, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear 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 number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Dalston with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has less than eighty years left, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Dalston with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Dalston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a conversion flat in Dalston being marketed with a lease of fraction over 61 years outstanding. Luca on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. S Watson who, having owned a one bedroom apartment in Dalston in August 2002. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative flats in Dalston with 100 year plus lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected yearly. The lease ended in 2078. Given that there were 52 years remaining we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
An example of a Freehold Enfranchisement decision for a Dalston property 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 was in relation to 4 flats. The unexpired term was 90 (or thereabouts).