Unfortunately that a Canonbury residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Canonbury property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term falls under 80 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 Most leasehold owners in Canonbury will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Canonbury with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Santander | |
| Yorkshire Building Society |
Using our service gives you enhanced 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 have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eliot owned a 2 bedroom flat in Canonbury being sold with a lease of a few days over fifty eight years remaining. Eliot informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr and Mrs. Y White completed a studio apartment in Canonbury in March 2010. The question was if we could approximate the premium would likely be for a ninety year lease extension. Similar properties in Canonbury with a long lease were valued around £290,000. The average amount of ground rent was £45 billed monthly. The lease expired in 2099. Considering the 73 years outstanding we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
An example of a Lease Extension decision 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 80.5 years.