There is no doubt about it a leasehold flat or house in Dulwich is a wasting asset as a result of the shortening lease. If the lease has, in excess of 125 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Dulwich will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Dulwich with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 freeholder in Dulwich,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dulwich valuers.
Off the back of lengthy discussions with the landlord of her garden flat in Dulwich, Poppy commenced the lease extension process as the eighty year deadline was swiftly approaching. The transaction completed in May 2006. The landlord’s fees were negotiated to approximately five hundred GBP.
In 2014 we were called by Ms R Campbell who, having acquired a basement apartment in Dulwich in February 2012. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Dulwich with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 billed yearly. The lease ran out on 1 February 2090. Given that there were 65 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.
An example of a Lease Extension decision for a Dulwich premises is 60 Taymount Grange Taymount Rise in June 2012. The Tribunal determined the premium at £13,346 for a lease extension of a further 90 years This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 64 years.