Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Haringey. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Haringey have the legal entitlement to extend the lease for a further 90 years under legislation. Do give careful attention before delaying your Haringey lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Haringey with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a landlord in Haringey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Haringey valuers.
Trailing unsuccessful negotiations with the freeholder of her two bedroom apartment in Haringey, Lauren started the lease extension process as the eighty year deadline was quickly nearing. The lease extension was finalised in July 2005. The landlord’s fees were restricted to under 700 pounds.
Last year we were called by Dr P Gómez , who took over the lease of a basement flat in Haringey in May 1998. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Identical residencies in Haringey with a long lease were in the region of £168,800. The average ground rent payable was £60 invoiced annually. The lease lapsed on 11 January 2081. Taking into account 55 years left we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
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 term as at the valuation date was 25.4 years.