Islington leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in Islington will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Islington with more than one hundred 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 circumstances 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Islington leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her garden flat in Islington, Aimee started the lease extension process as the 80 year mark was fast approaching. The transaction was concluded in July 2013. The landlord’s fees were kept to an absolute minimum.
Last year we were approach by Dr William Dupont , who took over the lease of a purpose-built flat in Islington in November 2012. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Identical properties in Islington with a long lease were worth £179,200. The mid-range amount of ground rent was £55 collected monthly. The lease ended in 2076. Taking into account 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
An example of a Lease Extension matter before the tribunal 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 unexpired term was 80.5 years.