Dalston leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Dalston will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Dalston with in excess of 100 years remaining on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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.
After protracted negotiations with the landlord of her purpose-built apartment in Dalston, Imogen started the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was finalised in May 2009. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. B Evans completed a studio apartment in Dalston in February 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Dalston with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease termination date was in 2077. Given that there were 52 years remaining we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 4 flats. The unexpired residue of the current lease was 90 (or thereabouts).