When it comes to domestic leasehold premises in Harringay, you are actually purchasing a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long 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 becomes disproportionately more expensive particularly when there are fewer than eighty years left. Leasehold owners in Harringay with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has fewer than 80 years left, under the relevant Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Harringay with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Harringay,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harringay valuers.
Trailing unsuccessful discussions with the freeholder of her two bedroom flat in Harringay, Catherine commenced the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was concluded in August 2010. The landlord’s costs were negotiated to slightly above 700 GBP.
Mrs Amber Cooper purchased a one bedroom apartment in Harringay in September 2012. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical premises in Harringay with 100 year plus lease were worth £200,000. The average ground rent payable was £50 collected per annum. The lease concluded on 18 October 2102. Having 77 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
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 affected 2 flats. The number of years remaining on the existing lease(s) was 74.75 years.