Main reasons to start your Dulwich lease extension

Why you should commence your Dulwich lease extension today:

A Dulwich lease depreciates with the years remaining on the lease.

Dulwich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Dulwich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Dulwich you would be well advised to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value

Dulwich property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not finance a property on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. Historically banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements have been chipped away by the requirement for lengthy leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Dulwich lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you enhanced control over the value of your Dulwich leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Dulwich Lease Extension Example Cases:

Gabriel, Dulwich, South East London,

Gabriel owned a conversion apartment in Dulwich on the market with a lease of just over 72 years unexpired. Gabriel informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.

Dulwich case:

Last Summer we were contacted by Mr Theo Rogers , who purchased a purpose-built apartment in Dulwich in June 1999. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable premises in Dulwich with an extended lease were valued about £189,000. The mid-range amount of ground rent was £55 collected quarterly. The lease end date was in 2079. Having 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of fees.