The re-sale value of a leasehold property in Dagenham is impacted by how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be concluded well before the 80 year cut off point. Leasehold Reform legislation entitles Dagenham qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Dagenham with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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.
Last October Samuel, started to get near to the eighty-year mark with the lease on his first floor apartment in Dagenham. In buying his property two decades ago, the length of the lease was of minimal concern. Luckily, he recognised he needed to take steps soon on a lease extension. Samuel arranged for a lease extension just in the nick of time in June. Samuel and the freeholder via the managing agents eventually settled on sum of £6,000 . If the lease had fallen to less than eighty years, the amount would have become more exhorbitant by at least £875.
Ms Jennifer Hall was assigned a lease of a ground floor apartment in Dagenham in May 2006. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative homes in Dagenham with an extended lease were valued around £243,000. The mid-range amount of ground rent was £65 collected quarterly. The lease came to a finish in 2088. Having 63 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of fees.
An example of a Lease Extension decision for a Dagenham premises 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 affected 1 flat. The unexpired term was 61.36 years.