Canary Wharf leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Canary Wharf residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Canary Wharf you must see if your lease has between seventy and ninety years remaining. There are compelling reasons why a Canary Wharf leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a freeholder in Canary Wharf,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Canary Wharf valuers.
Trailing lengthy discussions with the landlord of her ground floor flat in Canary Wharf, Mia commenced the lease extension process as the eighty year threshold was rapidly approaching. The transaction was finalised in August 2005. The landlord’s charges were restricted to slightly above 650 GBP.
In 2012 we were called by Mr and Mrs. D Gray who, having bought a first floor flat in Canary Wharf in October 1999. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative residencies in Canary Wharf with a long lease were valued around £171,800. The average amount of ground rent was £55 collected yearly. The lease expired on 12 November 2075. Given that there were 50 years outstanding we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.
An example of a Freehold Enfranchisement case for a Canary Wharf flat is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case was in relation to 3 flats. The unexpired term as at the valuation date was 101.61 years.