Chances are that where you own a flat in Dalston you actually own a long leasehold interest over your property
Leasehold premises in Dalston with in excess of 100 years remaining on the lease are sometimes 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Dalston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Dylan was the the leasehold proprietor of a high value flat in Dalston on the market with a lease of fraction over sixty years unexpired. Dylan on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr Kian Díaz owned a ground floor apartment in Dalston in February 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical properties in Dalston with a long lease were valued around £300,000. The average amount of ground rent was £50 billed per annum. The lease elapsed in 2102. Taking into account 76 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 lease term was 90 (or thereabouts).