When it comes to residential leasehold premises in Dalston, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than 80 years left. Anyone in Dalston with a lease nearing 81 years left should seriously consider extending it sooner as opposed to later. When the lease term has less than 80 years remaining, under the relevant legislation the landlord can calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth roughly 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 in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Dalston can be a difficult process. We recommend you obtain professional help from a conveyancer 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 Dalston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Rory, started to get near to the 80-year mark with the lease on his purpose- built flat in Dalston. In buying his flat two decades ago, the unexpired term was of minimal bearing. As luck would have it, he realised he needed to take steps soon on Extending the lease. Rory extended the lease just under the wire in May. Rory and the freeholder ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £950.
Last Autumn we were called by Mr A Baker , who completed a recently refurbished apartment in Dalston in March 1996. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Dalston with a long lease were valued about £275,000. The average ground rent payable was £65 collected annually. The lease terminated in 2092. Considering the 68 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Dalston property 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).