Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lisson Grove. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Lisson Grove have the right to extend the lease for a further 90 years in accordance with statute. Please give due deliberation before putting off your Lisson Grove lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
Leasehold residencies in Lisson Grove with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Lisson Grove,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 Lisson Grove valuers.
Nathaniel was the the leasehold proprietor of a conversion flat in Lisson Grove being marketed with a lease of just over 59 years outstanding. Nathaniel on an informal basis spoke with his landlord being a well known London-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 due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr I Walker purchased a first floor flat in Lisson Grove in June 1998. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Lisson Grove with a long lease were valued about £218,400. The average ground rent payable was £60 billed every twelve months. The lease terminated on 20 September 2085. Given that there were 59 years outstanding we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of legals.
An example of a Lease Extension decision for a Lisson Grove flat is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case was in relation to 2 flats. The unexpired term as at the valuation date was 24.02 years.