The market value of a leasehold property in Dulwich depends on how long the lease has left to run. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that all matters can be addressed in advance of the eighty year mark. Leasehold Reform legislation entitles Dulwich qualifying lessees to an additional term of 90 years in addition to the existing term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Dulwich with in excess of 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 home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Royal Bank of Scotland | |
| Virgin |
Regardless of whether you are a tenant or a landlord in Dulwich,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dulwich valuers.
Joseph was the the leasehold proprietor of a conversion flat in Dulwich on the market with a lease of a little over fifty eight years left. Joseph informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2012 we were e-mailed by Mrs Sophia Roberts who, having purchased a basement apartment in Dulwich in April 1999. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Dulwich with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed on 18 June 2106. Having 80 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
An example of a Lease Extension case 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 unexpired residue of the current lease was 64 years.