West Dulwich leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most West Dulwich tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in West Dulwich you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a West Dulwich leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in West Dulwich with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in West Dulwich,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Dulwich valuers.
Aaron owned a studio flat in West Dulwich on the market with a lease of fraction over 59 years unexpired. Aaron on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Winter we were approach by Mr and Mrs. A Harris , who moved into a one bedroom apartment in West Dulwich in July 2000. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in West Dulwich with a long lease were worth £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease finished on 12 June 2090. Taking into account 64 years outstanding we estimated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.
An example of a Freehold Enfranchisement case for a West Dulwich flat 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 related to 3 flats.