Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Dulwich. Clearly, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Dulwich have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Dulwich lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Lease extensions in Dulwich can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Dulwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Charlie, started to get close to the eighty-year threshold with the lease on his studio apartment in Dulwich. In buying his home two decades ago, the lease term was of minimal bearing. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Charlie extended the lease just under the wire in March. Charlie and the freeholder via the management company in the end agreed on sum of £5,500 . If he not met the deadline, the figure would have increased by a minimum £975.
In 2013 we were e-mailed by Mrs Poppy Reed who, having bought a garden flat in Dulwich in March 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical homes in Dulwich with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2099. Considering the 74 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
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 related to 1 flat. The unexpired residue of the current lease was 64 years.