On the balance of probabilities if you own a flat in Albany Park you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service will provide you enhanced control over the value of your Albany Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her two bedroom apartment in Albany Park, Naomi initiated the lease extension process as the eighty year deadline was rapidly coming. The legal work was finalised in May 2008. The freeholder’s charges were negotiated to about 700 pounds.
Last Autumn we were phoned by Ms R Morel , who bought a one bedroom flat in Albany Park in January 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Similar properties in Albany Park with an extended lease were valued about £300,000. The average amount of ground rent was £50 collected monthly. The lease finished on 6 August 2102. Given that there were 76 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including professional charges.
An example of a Vesting Order and Purchase of freehold decision for a Albany Park flat 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 unexpired residue of the current lease was 80.01 years.