With a long leasehold property in Dulwich, you are in fact renting it for a certain amount of time. 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 may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Dulwich with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
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 ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dulwich can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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.
Off the back of lengthy negotiations with the landlord of her first floor apartment in Dulwich, Millie initiated the lease extension process as the eighty year mark was swiftly approaching. The lease extension was concluded in April 2005. The landlord’s charges were negotiated to a tad over 450 GBP.
In 2013 we were phoned by Mrs W Jackson who, having bought a studio apartment in Dulwich in March 2009. We are asked if we could estimate the price would be for a 90 year lease extension. Similar properties in Dulwich with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £45 collected annually. The lease ended in 2094. Given that there were 69 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired term was 64 years.