The market value of Dalston leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold properties in Dalston with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Dalston,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Dalston valuers.
Hunter was the the leasehold proprietor of a conversion flat in Dalston on the market with a lease of just over 61 years outstanding. Hunter informally spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hunter to exercise his statutory right. Hunter obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were e-mailed by Ms Courtney Taylor who, having owned a purpose-built apartment in Dalston in November 2006. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparative properties in Dalston with an extended lease were worth £267,600. The average amount of ground rent was £65 invoiced monthly. The lease ended in 2092. Given that there were 67 years remaining we estimated the compensation to the landlord to extend the lease to be between £14,300 and £16,400 plus professional charges.
An example of a Freehold Enfranchisement decision for a Dalston flat 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 was 90 (or thereabouts).