Dalston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Dalston enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Dalston you must investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Dalston flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Dalston valuers.
Sam owned a conversion apartment in Dalston being sold with a lease of fraction over 61 years unexpired. Sam on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr Jasper Lee was assigned a lease of a newly refurbished apartment in Dalston in September 1998. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar premises in Dalston with a long lease were worth £250,400. The mid-range ground rent payable was £65 billed per annum. The lease ended on 21 March 2089. Taking into account 64 years remaining we calculated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.
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 was in relation to 4 flats. The remaining number of years on the lease was 90 (or thereabouts).