When it comes to residential leasehold premises in Canonbury, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Residents in Canonbury with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Canonbury can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 procuring Canonbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Toby was the the leasehold owner of a high value apartment in Canonbury being sold with a lease of just over 59 years remaining. Toby on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert advice and secured satisfactory resolution informally and readily saleable.
Mr Felix Rogers acquired a garden apartment in Canonbury in November 1999. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar flats in Canonbury with an extended lease were worth £181,600. The mid-range ground rent payable was £55 billed monthly. The lease expired on 26 October 2078. Taking into account 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus fees.
An example of a Lease Extension case 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 related to 1 flat. The unexpired term as at the valuation date was 80.5 years.