Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Alexandra Park. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Alexandra Park have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give due consideration before delaying your Alexandra Park lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Alexandra Park with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Alexandra Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alexandra Park valuers.
After lengthy negotiations with the freeholder of her purpose-built flat in Alexandra Park, Natalie started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The lease extension was finalised in October 2013. The landlord’s charges were kept to an absolute minimum.
Last month we were phoned by Dr Y Smith , who purchased a studio flat in Alexandra Park in August 2007. We are asked if we could estimate the premium could be to extend the lease by ninety years. Identical homes in Alexandra Park with 100 year plus lease were in the region of £295,000. The average ground rent payable was £45 invoiced monthly. The lease finished in 2100. Given that there were 74 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Alexandra Park flat is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case affected 1 flat. The unexpired residue of the current lease was 65.21 years.