The nearer a residential lease in East Dulwich gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. The majority of flat owners in East Dulwich will qualify for this right; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in East Dulwich with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake East Dulwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Theo owned a high value flat in East Dulwich being sold with a lease of a few days over fifty eight years outstanding. Theo informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last Spring we were e-mailed by Mr G Ward , who was assigned a lease of a garden apartment in East Dulwich in March 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparable homes in East Dulwich with a long lease were worth £249,200. The average ground rent payable was £60 billed monthly. The lease finished on 17 September 2075. Having 51 years remaining we approximated the compensation to the landlord to extend the lease to be between £42,800 and £49,400 plus fees.
An example of a Lease Extension case for a East Dulwich property is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case affected 1 flat. The remaining number of years on the lease was 61.81 years.