Unfortunately that a Canonbury residential lease is a deteriorating 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 reduction being disguised by increases in the Canonbury property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term drops 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. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Canonbury will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you better control over the value of your Canonbury leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Connor, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Canonbury. In buying his flat twenty years ago, the length of the lease was of little importance. Fortunately, he recognised he would imminently be paying way over the odds for Extending the lease. Connor extended the lease just in the nick of time last July. Connor and the freeholder via the managing agents in the end agreed on the final figure of £5,000 . If the lease had dropped to less than 80 years, the premium would have become more costly by a minimum £1,000.
Last year we were e-mailed by Mrs H Roux , who moved into a ground floor apartment in Canonbury in November 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative premises in Canonbury with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed on 3 September 2092. Having 66 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
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 related to 1 flat. The remaining number of years on the lease was 80.5 years.