Canonbury Lease Extension - Free Consultation

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Main reasons to start your Canonbury lease extension

Main reasons to commence your Canonbury lease extension today:

Increase your lease and increase your Canonbury property value

Canonbury leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Canonbury will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.

Canonbury property with a lease extension is almost the same value as a freehold

Leasehold properties in Canonbury with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not finance a property with a short lease

Lenders are really restricting their approach as regards to homes in Canonbury with short leases. For instance you might discover that their lending criteria are stricter and that they adjust interest rates depending on how many years are left on the lease. Some may even refuse to lend completely, so if you wanted to sell, your remaining options would be to find a cash buyer, or hope for the best at auction thus restricting your market.

Lender Requirement
Barclays plc Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaing from the start 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. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

Why use us for your lease extension in Canonbury?

Regardless of whether you are a tenant or a freeholder in Canonbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Canonbury valuers.

Canonbury Lease Extension Example Cases:

Charlie, Canonbury, North London

Half a year ago Charlie, started to get close to the eighty-year mark with the lease on his studio flat in Canonbury. Having purchased his property two decades ago, the length of the lease was of little bearing. Luckily, he realised he needed to take steps soon on Extending the lease. Charlie extended the lease at the eleventh hour last September. Charlie and the freeholder eventually settled on sum of £5,500 . If he not met the deadline, the premium would have gone up by a minimum £850.

Canonbury case:

In 2009 we were called by Mrs Grace Girard who, having completed a newly refurbished flat in Canonbury in February 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative premises in Canonbury with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2086. Having 66 years remaining we estimated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.

Decision in Hackney

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 affected 1 flat. The unexpired residue of the current lease was 80.5 years.