Chances are that if you own a flat in Harringay you actually own a long leasehold interest over your property
Leasehold premises in Harringay with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers 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 conveyancer we work with provide it.
Trailing lengthy discussions with the landlord of her basement flat in Harringay, Chantelle initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension completed in July 2006. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Ms Lauren Norbert who, having was assigned a lease of a studio flat in Harringay in October 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Harringay with a long lease were valued about £216,000. The mid-range ground rent payable was £60 collected annually. The lease lapsed on 14 February 2083. Given that there were 58 years unexpired we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Harringay premises 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.