Canonbury leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips under eighty years - otherwise a higher amount will be due. Flat owners in Canonbury will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Canonbury with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
Engaging our service gives you increased control over the value of your Canonbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Charlie was the the leasehold owner of a high value apartment in Canonbury being marketed with a lease of just over fifty eight years left. Charlie on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr S Wilson acquired a garden apartment in Canonbury in February 2008. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Canonbury with 100 year plus lease were valued around £280,000. The mid-range ground rent payable was £45 billed monthly. The lease finished on 28 August 2096. Taking into account 70 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus costs.
An example of a Lease Extension case for a Canonbury property 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 unexpired lease term was 80.5 years.