The re-sale value of a leasehold property in Canonbury is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year cut off point. Leasehold Reform legislation entitles Canonbury qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using 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 want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Hugo was the the leasehold proprietor of a 2 bedroom flat in Canonbury being sold with a lease of fraction over fifty eight years unexpired. Hugo informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. B Davies bought a one bedroom flat in Canonbury in August 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Canonbury with a long lease were worth £250,400. The average ground rent payable was £65 collected every twelve months. The lease finished in 2090. Considering the 64 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
An example of a Lease Extension case 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 unexpired term was 80.5 years.