The re-sale value of a leasehold property in Dagenham depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that formalities can be concluded in advance of the 80 year threshold. Leasehold Reform legislation enables Dagenham qualifying lessees to obtain a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Dagenham can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Dagenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the freeholder of her basement flat in Dagenham, Amy initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The transaction was concluded in October 2014. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. J Ramírez who, having purchased a basement apartment in Dagenham in February 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Dagenham with a long lease were in the region of £200,000. The average amount of ground rent was £50 collected yearly. The lease ended in 2103. Taking into account 78 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired lease term was 61.36 years.