Muswell Hill leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Muswell Hill tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Muswell Hill you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Muswell Hill with in excess of 100 years unexpired 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Muswell Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Caleb, started to get close to the 80-year threshold with the lease on his leasehold flat in Muswell Hill. Having bought his flat two decades ago, the lease term was of little significance. As luck would have it, he realised he needed to take steps soon on a lease extension. Caleb was able to extend his lease just in the nick of time in September. Caleb and the freeholder ultimately agreed on the final figure of £6,000 . If the lease had fallen to less than 80 years, the amount would have become more costly by a minimum £850.
Mr Blake Rogers acquired a newly refurbished flat in Muswell Hill in October 2006. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar flats in Muswell Hill with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2103. Taking into account 79 years unexpired we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
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 affected 1 flat. The unexpired term was 65.21 years.