Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Albany Park. Inevitably, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Albany Park have the legal entitlement to extend the lease for an additional ninety years under statute. Do give careful attention before putting off your Albany Park lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Albany Park,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Albany Park valuers.
Ibrahim owned a studio flat in Albany Park being sold with a lease of a little over 61 years remaining. Ibrahim on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were approached by Ms Sarah Lefèvre who, having owned a ground floor flat in Albany Park in August 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable premises in Albany Park with a long lease were valued about £233,200. The average amount of ground rent was £60 invoiced monthly. The lease ran out on 7 March 2087. Given that there were 61 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus costs.
An example of a Vesting Order and Purchase of freehold case for a Albany Park property is Ground Floor Flat 4A Baronet Road in February 2010. Following a vesting order by Edmonton County Court on 23rd December 2008 (case number 8ED064) the Tribunal decided that the price that the Applicant for the freehold interest should pay is £8,689.00 This case related to 2 flats. The remaining number of years on the lease was 80.01 years.