With a residential leasehold property in Highbury, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Highbury with a lease nearing 81 years left should seriously think of extending it without delay. Once a lease has under 80 years outstanding, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Highbury with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Highbury can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Highbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Evan, started to get near to the eighty-year threshold with the lease on his studio flat in Highbury. Having purchased his flat 18 years ago, the unexpired term was of minimal interest. Fortunately, he became aware that he needed to take steps soon on Extending the lease. Evan extended the lease just under the wire last July. Evan and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have become more costly by at least £950.
In 2012 we were e-mailed by Dr G Lefebvre who, having moved into a purpose-built flat in Highbury in November 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by an additional years. Comparative homes in Highbury with 100 year plus lease were valued about £275,000. The average amount of ground rent was £55 collected yearly. The lease lapsed on 3 August 2103. Taking into account 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
An example of a Lease Extension case for a Highbury property is Lower Flat 16A Beatty Road in September 2012. The premium payable was £13,577. The terms of the lease has been agreed between the Applicants and the First Respondent and the Tribunal did not seek to disturb that agreement. This case related to 1 flat.