Dagenham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Dagenham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Dagenham you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Dagenham leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Dagenham,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dagenham valuers.
Matthew owned a high value apartment in Dagenham being sold with a lease of just over fifty eight years remaining. Matthew on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Summer we were contacted by Mr and Mrs. R Richardson , who moved into a purpose-built flat in Dagenham in June 2001. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Dagenham with a long lease were valued around £267,600. The average amount of ground rent was £65 collected annually. The lease lapsed on 22 March 2092. Having 67 years unexpired we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including costs.
An example of a Lease Extension case 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 term as at the valuation date was 61.36 years.