When it comes to domestic leasehold premises in Camden, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Camden with a lease nearing 81 years left should seriously consider extending it without delay. Once a lease has fewer than 80 years remaining, under the current legislation the landlord can calculate and demand a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander |
Lease extensions in Camden can be a difficult process. We recommend you procure guidance 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.
In 2014 Eli, came critically near to the 80-year mark with the lease on his studio flat in Camden. In buying his flat twenty years previously, the lease term was of little interest. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Eli was able to extend his lease just in the nick of time last June. Eli and the freeholder via the managing agents subsequently settled on sum of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by at least £950.
In 2009 we were called by Dr Y Jackson who, having purchased a garden flat in Camden in August 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Camden with a long lease were valued about £257,800. The average amount of ground rent was £65 billed yearly. The lease expired on 18 October 2091. Given that there were 65 years left we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Camden property 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 64.77 years.