The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in West Dulwich have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your West Dulwich lease extension. Postponing the costs today simply increases the premium you will ultimately have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in West Dulwich can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Dulwich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted negotiations with the landlord of her basement apartment in West Dulwich, Ashleigh initiated the lease extension process as the 80 year mark was quickly approaching. The lease extension was concluded in September 2010. The freeholder’s costs were kept to an absolute minimum.
Ms Alicia Green took over the lease of a basement flat in West Dulwich in January 2011. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in West Dulwich with an extended lease were valued around £227,800. The average ground rent payable was £45 invoiced quarterly. The lease expired on 20 November 2090. Taking into account 65 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
An example of a Freehold Enfranchisement decision for a West Dulwich property is 8 Deerbrook Road in May 2010. the Tribunal held that the enfranchisement price, in accordance with section 32 and Schedule 6 of the Leasehold Reform, Housing and Urban Development Act 1993 was £22,820, payable by the Applicants. By an order of the Lambeth County Court dated 17 June 2009 the case had been transferred to the Leasehold Valuation Tribunal for its determination of the premium payable This case was in relation to 3 flats.