With a long leasehold premises in Camden, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Residents in Camden with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Camden with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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 Camden can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with Camden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Aarav, came precariously near to the 80-year mark with the lease on his one bedroom flat in Camden. Having bought his flat two decades ago, the unexpired term was of minimal importance. by good luck, he noticed he needed to take action soon on a lease extension. Aarav arranged for a lease extension just ahead of time last July. Aarav and the freeholder ultimately agreed on the final figure of £5,000 . If the lease had dropped to less than eighty years, the premium would have gone up by at least £975.
Last month we were contacted by Mr and Mrs. H Thomas , who moved into a purpose-built apartment in Camden in November 2007. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar premises in Camden with an extended lease were valued around £205,000. The average amount of ground rent was £50 collected monthly. The lease expiry date was on 4 April 2105. Considering the 79 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
An example of a Lease Extension case for a Camden residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case related to 1 flat. The unexpired term was 64.77 years.