As the length of the unexpired term of a Canonbury domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Canonbury will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Canonbury with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Canonbury leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months George, came critically near to the eighty-year threshold with the lease on his purpose- built flat in Canonbury. Having purchased his home two decades ago, the unexpired term was of no concern. Thankfully, he realised he needed to take steps soon on a lease extension. George arranged for a lease extension at the eleventh hour in June. George and the freeholder eventually settled on sum of £6,000 . If the lease had slid below eighty years, the amount would have increased by a minimum £875.
In 2010 we were approached by Mr Y Petit who, having took over the lease of a first floor apartment in Canonbury in January 2007. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Identical premises in Canonbury with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 billed every twelve months. The lease finished in 2106. Considering the 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension matter before the tribunal for a Canonbury residence is 5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the extended lease is £700.00 This case related to 1 flat. The unexpired residue of the current lease was 80.5 years.