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Top reasons for Dagenham lease extension

Main reasons to commence your Dagenham lease extension today:

A Dagenham lease depreciates with the years remaining on the lease.

When it comes to domestic leasehold premises in Dagenham, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Dagenham with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.

Mortgage lenders may decide not to loan monies on a short lease

Most banks have narrowed their lending criteria in recent years and borrowers are finding it increasingly difficult to raise funding or re-mortgage against flats with shorter lease terms, particularly under 75 years as they are considered to be inadequate for lending purposes.

Lender Requirement
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.
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 remaing from the start of the mortgage.
Lloyds TSB Scotland Mortgage term plus 30 years subject to an overall minimum term of 70 years
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Why use us for your lease extension in Dagenham?

The lawyers that we work with handle 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.

Dagenham Lease Extension Example Cases:

Chantelle, Dagenham, London,

Off the back of unsuccessful negotiations with the landlord of her two bedroom apartment in Dagenham, Chantelle initiated the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in April 2005. The freeholder’s charges were negotiated to below four hundred GBP.

Dagenham case:

Dr Bethan Reed took over the lease of a basement apartment in Dagenham in June 2012. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical properties in Dagenham with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out on 28 May 2090. Given that there were 69 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.

Decision in Redbridge

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 remaining number of years on the lease was 61.36 years.