Enfield leases on domestic deteriorating in value. if your lease has in the region of ninety years left, 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 begin incurring an additional element called marriage value. Leasehold owners in Enfield will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Enfield,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 Enfield valuers.
Eliot owned a conversion flat in Enfield on the market with a lease of just over 72 years remaining. Eliot on an informal basis approached his freeholder 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 subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. S Cooper who, having owned a studio apartment in Enfield in January 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable residencies in Enfield with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed annually. The lease expired on 26 March 2103. Considering the 77 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Enfield flat is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The unexpired term as at the valuation date was 81.79 years.