The market value of Harringay leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than 80 years
Leasehold properties in Harringay with over 100 years remaining 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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
| 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 Harringay can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
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 dealing with Harringay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Seth, started to get near to the 80-year mark with the lease on his one bedroom apartment in Harringay. In buying his property two decades ago, the lease term was of minimal relevance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Seth extended the lease just in the nick of time last September. Seth and the landlord subsequently agreed on a premium of £5,000 . If the lease had slid below eighty years, the figure would have escalated by a minimum £850.
Last Christmas we were contacted by Mr and Mrs. F Garcia , who was assigned a lease of a one bedroom flat in Harringay in August 1997. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Harringay with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded on 19 June 2102. Taking into account 76 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement case for a Harringay residence is 37 St. Margarets Avenue in January 2010. Following a vesting order by Edmonton County Court on 8th November 2008 the Tribunal decided that the price that the Applicant for the freehold interest should pay is £20,543 This case related to 2 flats. The unexpired lease term was 74.75 years.