Canonbury leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Canonbury will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Canonbury with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Canonbury,the lease extension lawyers 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.
In the wake of 6 months of lengthy negotiations with the landlord of her studio flat in Canonbury, Lydia started the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction completed in September 2014. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. O Sánchez who, having bought a first floor apartment in Canonbury in October 2007. The question was if we could estimate the price could be to prolong the lease by an additional years. Comparable flats in Canonbury with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed every twelve months. The lease came to a finish on 13 April 2103. Considering the 78 years outstanding we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension decision for a Canonbury flat 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.