The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Dulwich may extend the lease for a further 90 years under statute. Do think carefully before delaying your East Dulwich lease extension. Putting off the costs today simply escalates the premium you will eventually have to pay for a lease extension.
Leasehold residencies in East Dulwich with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your East Dulwich leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Noah, started to get near to the 80-year threshold with the lease on his garden flat in East Dulwich. In buying his property 19 years ago, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Noah extended the lease at the eleventh hour in August. Noah and the landlord eventually agreed on sum of £5,000 . If the lease had dropped to less than 80 years, the figure would have gone up by at least £925.
Last Autumn we were e-mailed by Dr E Turner , who owned a first floor flat in East Dulwich in January 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable residencies in East Dulwich with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease ended in 2101. Having 76 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term as at the valuation date was 61.81 years.