Dagenham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Dagenham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dagenham you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Dagenham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dagenham valuers.
In the wake of eight months of unsuccessful negotiations with the landlord of her garden apartment in Dagenham, Jordan initiated the lease extension process as the 80 year threshold was swiftly coming. The lease extension was concluded in May 2009. The landlord’s costs were kept to an absolute minimum.
Last Winter we were approach by Mr and Mrs. N Nguyen , who was assigned a lease of a newly refurbished flat in Dagenham in March 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Dagenham with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 invoiced yearly. The lease terminated in 2098. Taking into account 73 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including legals.
An example of a Lease Extension case for a Dagenham residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case was in relation to 1 flat. The unexpired term as at the valuation date was 61.36 years.