Highgate leases on residential deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Highgate will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Highgate with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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 |
| 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. |
Lease extensions in Highgate can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge dealing with Highgate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her garden flat in Highgate, Holly initiated the lease extension process as the 80 year deadline was swiftly coming. The lease extension completed in July 2009. The landlord’s costs were kept to an absolute minimum.
In 2013 we were called by Dr D Thompson who, having purchased a basement flat in Highgate in March 2004. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparable premises in Highgate with a long lease were in the region of £208,200. The average amount of ground rent was £65 invoiced yearly. The lease termination date was on 27 March 2086. Taking into account 61 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Highgate flat 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 unexpired term as at the valuation date was 67.85 years.