When it comes to residential leasehold premises in Dulwich, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Dulwich with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant statute the freeholder can calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service will provide you better control over the value of your Dulwich leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold owner of a high value apartment in Dulwich on the market with a lease of fraction over 59 years unexpired. Daniel informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr V Pérez purchased a ground floor flat in Dulwich in April 1999. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Identical flats in Dulwich with 100 year plus lease were valued around £223,400. The average amount of ground rent was £60 collected every twelve months. The lease ended on 19 June 2085. Taking into account 59 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Dulwich residence 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.