The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Dulwich have the right to extend the lease for an additional 90 years in accordance with statute. Please give careful consideration before delaying your East Dulwich lease extension. Postponing the costs now simply escalates the premium you will eventually have to pay to extend the lease.
Leasehold residencies in East Dulwich with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
Lender | Requirement |
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Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
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. |
Using our service gives you increased control over the value of your East Dulwich leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ali, started to get near to the eighty-year mark with the lease on his basement apartment in East Dulwich. Having purchased his property two decades ago, the length of the lease was of little concern. Fortunately, he recognised he needed to take steps soon on Extending the lease. Ali extended the lease just in the nick of time in May. Ali and the freeholder eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,150.
Last Summer we were contacted by Dr Theo Rose , who moved into a ground floor flat in East Dulwich in July 1998. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical properties in East Dulwich with an extended lease were valued about £168,800. The average ground rent payable was £60 billed per annum. The lease came to a finish in 2079. Considering the 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
An example of a Lease Extension case for a East Dulwich premises 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 was in relation to 1 flat. The unexpired term was 61.81 years.