On the balance of probabilities if you own a flat in Dulwich you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Dulwich,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Dulwich valuers.
Half a year ago Adam, started to get near to the 80-year threshold with the lease on his studio apartment in Dulwich. In buying his flat two decades ago, the length of the lease was of minimal concern. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Adam was able to extend his lease just ahead of time in September. Adam and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had gone below eighty years, the price would have escalated by a minimum £1,000.
Mr Gabriel Cook purchased a garden flat in Dulwich in February 1995. The question was if we could estimate the price would be to prolong the lease by 90 years. Similar homes in Dulwich with an extended lease were in the region of £248,000. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed in 2089. Given that there were 63 years unexpired we estimated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired residue of the current lease was 64 years.