Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Wood Green. Clearly, the length of lease remaining shortens as time goes by. This is often ignored and only becomes a problem when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Wood Green have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Wood Green lease extension. Holding off the cost now likely increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Wood Green can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Wood Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Luke, came critically near to the 80-year threshold with the lease on his garden apartment in Wood Green. Having bought his home 19 years ago, the lease term was of no relevance. Luckily, he recognised he would soon be paying an inflated amount for a lease extension. Luke extended the lease at the eleventh hour in January. Luke and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had descended lower than 80 years, the sum would have become more costly by at least £925.
Dr R Clarke was assigned a lease of a first floor apartment in Wood Green in October 1999. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Wood Green with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease concluded in 2102. Given that there were 76 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Wood Green flat is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case affected 1 flat. The unexpired term as at the valuation date was 81.79 years.