The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Canary Wharf have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Canary Wharf lease extension. Putting off that expense today simply increases the amount you will ultimately have to pay to extend the lease.
Leasehold premises in Canary Wharf with in excess of 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 landlord in Canary Wharf,the lease extension experts 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.
Off the back of protracted correspondence with the freeholder of her first floor apartment in Canary Wharf, Hannah commenced the lease extension process as the eighty year mark was swiftly advancing. The transaction was concluded in July 2014. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. E Martínez owned a studio apartment in Canary Wharf in August 2008. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Canary Wharf with a long lease were valued around £275,000. The average amount of ground rent was £65 billed quarterly. The lease elapsed on 21 September 2093. Considering the 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Canary Wharf premises 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 affected 3 flats. The unexpired residue of the current lease was 101.61 years.