For anyone whose East Dulwich flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold residencies in East Dulwich with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure East Dulwich 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.
Caleb was the the leasehold owner of a high value flat in East Dulwich being marketed with a lease of a little over fifty eight years unexpired. Caleb informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last month we were phoned by Mr and Mrs. Y Anderson , who moved into a purpose-built apartment in East Dulwich in January 2003. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable premises in East Dulwich with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced monthly. The lease concluded in 2082. Given that there were 57 years remaining we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
An example of a Lease Extension decision for a East Dulwich residence 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 residue of the current lease was 61.81 years.