When it comes to residential leasehold property in Muswell Hill, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Muswell Hill with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. Once the lease term has fewer than eighty years left, under the relevant statute the landlord can calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Muswell Hill with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 will provide you better control over the value of your Muswell Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory owned a conversion flat in Muswell Hill on the market with a lease of fraction over 61 years remaining. Rory informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2011 we were e-mailed by Mr Harvey Peterson who, having completed a ground floor flat in Muswell Hill in January 2012. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Muswell Hill with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease came to a finish on 25 September 2081. Taking into account 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
An example of a Lease Extension decision for a Muswell Hill property is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case was in relation to 1 flat. The remaining number of years on the lease was 65.21 years.