When it comes to long leasehold premises in Harringay, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Anyone in Harringay with a lease approaching 81 years remaining should seriously consider extending it sooner rather than later. When the lease term has under eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Harringay with in excess of one hundred years outstanding on the lease are often referred to as ‘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 service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancing solicitors that we work with undertake Harringay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After protracted negotiations with the landlord of her ground floor flat in Harringay, Kate started the lease extension process as the 80 year deadline was quickly coming. The transaction was concluded in September 2005. The freeholder’s costs were kept to an absolute minimum.
Dr Lucas Clark acquired a garden flat in Harringay in August 2004. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Harringay with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 collected yearly. The lease termination date was in 2088. Taking into account 62 years remaining we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus fees.
An example of a Freehold Enfranchisement case for a Harringay flat 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 affected 2 flats. The remaining number of years on the lease was 74.75 years.