Islington leases on residential properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Islington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Islington with in excess of one hundred years left 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 to be gained by 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Islington 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.
Last October Eli, started to get near to the 80-year mark with the lease on his basement flat in Islington. In buying his property two decades ago, the unexpired term was of minimal significance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Eli arranged for a lease extension just under the wire last July. Eli and the landlord in the end settled on sum of £5,500 . If he not met the deadline, the amount would have increased by a minimum £1,025.
In 2009 we were phoned by Dr Freddie White who, having was assigned a lease of a purpose-built apartment in Islington in May 1996. We are asked if we could estimate the premium could be to prolong the lease by an additional years. Similar homes in Islington with an extended lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease expired in 2102. Considering the 76 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension case for a Islington property is 5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the extended lease is £700.00 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 80.5 years.