With a long leasehold premises in Islington, you are actually purchasing a right to reside in a property for a set 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 a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Islington with a lease nearing 81 years left should seriously think of extending it sooner than later. When a lease has below 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Islington can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Islington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a studio apartment in Islington being sold with a lease of fraction over fifty eight years outstanding. Finn on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Last month we were called by Mr James Lefebvre , who purchased a basement flat in Islington in January 2010. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Islington with an extended lease were valued around £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 5 February 2100. Considering the 74 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension decision for a Islington residence 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 affected 1 flat. The number of years remaining on the existing lease(s) was 80.5 years.