Dalston residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Dalston with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Dalston,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dalston valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her purpose-built flat in Dalston, Chelsea initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension completed in January 2013. The landlord’s charges were restricted to slightly above 550 pounds.
Mr Stanley Wilson completed a garden apartment in Dalston in September 2000. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Dalston with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed quarterly. The lease ran out on 18 August 2101. Considering the 75 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
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 related to 4 flats. The unexpired term was 90 (or thereabouts).