Dagenham leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Dagenham residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Dagenham you would be well advised to check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Dagenham with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Dagenham,the lease extension lawyers 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 Dagenham valuers.
Off the back of protracted correspondence with the landlord of her leasehold flat in Dagenham, Jasmine initiated the lease extension process as the eighty year deadline was rapidly advancing. The lease extension was finalised in September 2012. The landlord’s costs were negotiated to about 650 pounds.
Last Winter we were called by Ms L Ricardo , who took over the lease of a garden flat in Dagenham in September 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Similar flats in Dagenham with an extended lease were valued around £285,000. The mid-range amount of ground rent was £45 collected yearly. The lease expired on 13 April 2098. Given that there were 72 years remaining we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
An example of a Lease Extension case for a Dagenham property is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The remaining number of years on the lease was 61.36 years.