There is no doubt about it a leasehold flat or house in Haringey is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner than later. The majority of flat owners in Haringey will meet the qualifying criteria; however a conveyancer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Haringey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Haringey valuers.
In 2014 Reuben, came very close to the 80-year threshold with the lease on his ground floor apartment in Haringey. Having bought his flat 18 years ago, the length of the lease was of minimal significance. Thankfully, he became aware that he would soon be paying an escalated premium for a lease extension. Reuben arranged for a lease extension at the eleventh hour last September. Reuben and the landlord who owned the flat above in the end settled on a premium of £5,500 . If the lease had gone below eighty years, the sum would have become more exhorbitant by a minimum £1,000.
Last February we were called by Ms Zoe Parker , who acquired a studio apartment in Haringey in July 1996. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Haringey with a long lease were valued around £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded on 1 November 2079. Taking into account 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 not including legals.
An example of a Lease Extension case for a Haringey property is 16 Langham Close in June 2009. The Tribunal determined that the premium to be paid by the Applicant to the Respondent for the grant of a new lease was £45,672. This case affected 1 flat. The unexpired residue of the current lease was 25.4 years.