With a domestic leasehold property in Dalston, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may 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 particularly when there are fewer than eighty years left. Leasehold owners in Dalston with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, 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 roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Dalston can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Dalston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jacob, came very near to the 80-year mark with the lease on his leasehold apartment in Dalston. Having bought his flat two decades ago, the unexpired term was of little concern. Fortunately, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jacob arranged for a lease extension at the eleventh hour in September. Jacob and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £950.
Last Spring we were phoned by Dr Mia Patel , who took over the lease of a newly refurbished flat in Dalston in July 2012. We are asked if we could estimate the price could be to prolong the lease by ninety years. Identical residencies in Dalston with 100 year plus lease were in the region of £206,200. The average amount of ground rent was £60 collected monthly. The lease ended in 2081. Given that there were 56 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Dalston flat 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 remaining number of years on the lease was 90 (or thereabouts).