With a long leasehold property in Wood Green, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Wood Green with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Wood Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy correspondence with the freeholder of her first floor apartment in Wood Green, Imogen commenced the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in May 2005. The landlord’s fees were negotiated to slightly above five hundred GBP.
In 2014 we were phoned by Dr Y Petit who, having acquired a newly refurbished flat in Wood Green in January 2004. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Wood Green with a long lease were worth £173,800. The average amount of ground rent was £60 billed per annum. The lease ran out on 2 July 2081. Having 55 years left we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus legals.
An example of a Lease Extension case for a Wood Green residence 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.