When it comes to long leasehold property in Dulwich, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years remaining. Residents in Dulwich with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has below 80 years remaining, under the current legislation the freeholder can calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Dulwich with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake Dulwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following lengthy negotiations with the landlord of her basement flat in Dulwich, Alice started the lease extension process just as her lease was nearing the critical eighty-year threshold. The legal work completed in November 2010. The landlord’s charges were negotiated to about 550 pounds.
Mr G Norbert bought a one bedroom flat in Dulwich in August 2011. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Similar residencies in Dulwich with 100 year plus lease were valued around £191,400. The mid-range amount of ground rent was £55 invoiced per annum. The lease finished on 23 January 2079. Taking into account 54 years remaining we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
An example of a Lease Extension decision for a Dulwich flat 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 affected 1 flat. The remaining number of years on the lease was 64 years.