The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Dulwich can extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your East Dulwich lease extension. Shelving the costs today simply escalates the premium you will ultimately be required to pay for a lease extension.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in East Dulwich,the lease extension experts 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 East Dulwich valuers.
In 2014 Logan, started to get near to the 80-year mark with the lease on his two bedroom apartment in East Dulwich. In buying his property twenty years ago, the lease term was of no interest. by good luck, he noticed he needed to take steps soon on Extending the lease. Logan extended the lease just under the wire in March. Logan and the freeholder ultimately settled on sum of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by at least £1,050.
Mr and Mrs. B Williams owned a one bedroom apartment in East Dulwich in September 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Identical residencies in East Dulwich with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 collected every twelve months. The lease finished in 2098. Having 73 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension case for a East Dulwich flat is Flat 1 40-42 Ewelme Road in August 2012. the Tribunal assessed the premium for the lease extension in the sum of £11,800 This case related to 1 flat. The unexpired term as at the valuation date was 61.81 years.