Unfortunately that a Camden residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Camden property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Camden will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in Camden with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Regardless of whether you are a tenant or a landlord in Camden,the lease extension solicitors 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 Camden valuers.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her leasehold apartment in Camden, Chantelle commenced the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension completed in May 2012. The freeholder’s costs were restricted to about five hundred GBP.
Mr and Mrs. J Edwards took over the lease of a studio apartment in Camden in October 2011. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable homes in Camden with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 collected monthly. The lease expired on 19 October 2092. Considering the 67 years unexpired we approximated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including expenses.
An example of a Lease Extension decision for a Camden flat 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 affected 1 flat. The remaining number of years on the lease was 64.77 years.