With a domestic leasehold premises in Islington, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern 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 rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Residents in Islington with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under 80 years remaining, under the current Act the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Islington with more than one hundred years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Islington leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her one bedroom apartment in Islington, Caitlin commenced the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension completed in June 2014. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. W Mitchell who, having was assigned a lease of a first floor flat in Islington in March 2006. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative premises in Islington with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed on 22 June 2098. Given that there were 72 years left we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of legals.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired term as at the valuation date was 80.5 years.