When it comes to domestic leasehold premises in Dagenham, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Residents in Dagenham with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has below 80 years left, under the current Act the freeholder is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Yorkshire 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.|
The conveyancers that we work with procure Dagenham 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.
During the course of the last few months Eliot, started to get near to the 80-year mark with the lease on his ground floor flat in Dagenham. In buying his property twenty years previously, the lease term was of no importance. by good luck, he realised he needed to take action soon on Extending the lease. Eliot arranged for a lease extension just ahead of time in August. Eliot and the freeholder via the management company ultimately settled on an amount of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £850.
Last Christmas we were e-mailed by Mr and Mrs. M Anderson , who took over the lease of a basement apartment in Dagenham in April 2009. The question was if we could approximate the price would be to prolong the lease by 90 years. Comparable flats in Dagenham with a long lease were valued about £171,800. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2069. Given that there were 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
An example of a Lease Extension decision for a Dagenham flat 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 number of years remaining on the existing lease(s) was 61.36 years.