Tufnell Park residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Tufnell Park with over 100 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Tufnell Park leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Trailing unsuccessful discussions with the freeholder of her two bedroom apartment in Tufnell Park, Laura commenced the lease extension process just as her lease was approaching the all-important eighty-year threshold. The transaction was concluded in July 2010. The freeholder’s charges were negotiated to below four hundred GBP.
Last Spring we were e-mailed by Dr Jamie Stewart , who took over the lease of a first floor apartment in Tufnell Park in July 2001. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar premises in Tufnell Park with 100 year plus lease were valued around £210,600. The mid-range ground rent payable was £45 collected quarterly. The lease terminated in 2087. Taking into account 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.
An example of a Lease Extension decision for a Tufnell Park flat is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case affected 1 flat. The unexpired term as at the valuation date was 64.77 years.