Dulwich leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Dulwich will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Dulwich leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted correspondence with the landlord of her studio apartment in Dulwich, Laura started the lease extension process as the 80 year threshold was fast approaching. The legal work was concluded in October 2006. The landlord’s fees were negotiated to below 650 GBP.
Mr and Mrs. W Baker acquired a garden apartment in Dulwich in September 1995. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Identical properties in Dulwich with an extended lease were in the region of £290,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 13 July 2097. Taking into account 73 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a Dulwich property 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 number of years remaining on the existing lease(s) was 64 years.