The re-sale value of a leasehold property in Dalston is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be concluded well before the 80 year cut off point. Current legislation entitles Dalston qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the 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 any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Engaging our service gives you better control over the value of your Dalston leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her two bedroom flat in Dalston, Hollie commenced the lease extension process as the eighty year deadline was quickly approaching. The legal work was concluded in November 2010. The landlord’s charges were negotiated to about 550 GBP.
In 2012 we were approached by Mr and Mrs. V Carter who, having was assigned a lease of a ground floor flat in Dalston in September 1998. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative homes in Dalston with an extended lease were worth £216,000. The average amount of ground rent was £60 invoiced monthly. The lease finished on 28 September 2084. Taking into account 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including legals.
An example of a Freehold Enfranchisement case for a Dalston premises is 150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500. This case related to 4 flats. The unexpired term as at the valuation date was 90 (or thereabouts).