The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Dagenham may extend the lease for a further ninety years under legislation. Do think carefully before delaying your Dagenham lease extension. Putting off the costs today simply escalates the premium you will ultimately have to pay for a lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Dagenham leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jasper owned a 2 bedroom apartment in Dagenham being marketed with a lease of a few days over fifty eight years remaining. Jasper on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert advice and secured an acceptable resolution informally and readily saleable.
Last month we were called by Ms I Morgan , who acquired a first floor flat in Dagenham in October 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar properties in Dagenham with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced yearly. The lease lapsed in 2084. Taking into account 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus expenses.
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 affected 1 flat. The unexpired term as at the valuation date was 61.36 years.