Unfortunately that a Canonbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Canonbury property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Canonbury will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Canonbury with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 Canonbury can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience dealing with Canonbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Jamie, came very near to the eighty-year mark with the lease on his two bedroom flat in Canonbury. In buying his flat 18 years previously, the unexpired term was of no concern. Luckily, it dawned on him that he would soon be paying way over the odds for Extending the lease. Jamie arranged for a lease extension just in the nick of time in April. Jamie and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If the lease had gone below eighty years, the price would have escalated by a minimum £875.
Last Summer we were e-mailed by Mr and Mrs. V Jackson , who moved into a first floor apartment in Canonbury in November 2006. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparative properties in Canonbury with a long lease were valued about £285,000. The average ground rent payable was £45 billed monthly. The lease terminated on 6 March 2098. Taking into account 72 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision for a Canonbury premises 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 affected 1 flat. The remaining number of years on the lease was 80.5 years.