Harringay residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Harringay leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a conversion apartment in Harringay on the market with a lease of fraction over fifty eight years outstanding. Finn informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and secured satisfactory deal without going to tribunal and readily saleable.
Mr Luca François bought a one bedroom flat in Harringay in January 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative flats in Harringay with an extended lease were worth £184,000. The mid-range ground rent payable was £55 invoiced yearly. The lease concluded on 15 October 2079. Taking into account 53 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement decision 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 remaining number of years on the lease was 74.75 years.