When it comes to long leasehold premises in Crouch End, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Crouch End with a lease drawing near to 81 years left should seriously think of extending it without delay. When the lease term has fewer than 80 years remaining, under the relevant Act the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Crouch End leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold owner of a 2 bedroom flat in Crouch End being sold with a lease of a few days over 72 years left. Henry informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2010 we were e-mailed by Mrs Daisy Nguyen who, having purchased a newly refurbished apartment in Crouch End in November 2009. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Identical flats in Crouch End with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed in 2075. Given that there were 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including fees.
An example of a Lease Extension matter before the tribunal for a Crouch End residence is Flat 2A 19 Shepherds Hill in June 2014. The tribunal concluded in accordance with section 48 and schedule 13 of the Leasehold Reform,Housing and Urban Development Act (the 1993 Act) that the premium payable in respect of the grant of a new lease for the Flat be £24,303 (twenty four thousand three hundred and three pounds) This case affected 1 flat. The remaining number of years on the lease was 67.85 years.