When it comes to residential leasehold premises in Highgate, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Highgate with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years remaining, under the current statute the landlord can calculate and charge a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Highgate with over 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Santander | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Highgate can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in lease extensions.
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 procuring Highgate lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tyler, started to get near to the eighty-year threshold with the lease on his one bedroom apartment in Highgate. Having purchased his property twenty years previously, the length of the lease was of no interest. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Tyler was able to extend his lease just under the wire last June. Tyler and the freeholder via the management company eventually agreed on sum of £5,500 . If the lease had gone to less than 80 years, the premium would have increased by at least £1,000.
In 2014 we were contacted by Mr K Anderson who, having bought a purpose-built apartment in Highgate in June 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Highgate with a long lease were worth £191,000. The mid-range ground rent payable was £65 collected yearly. The lease concluded on 12 March 2084. Given that there were 58 years remaining we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including costs.
An example of a Lease Extension decision for a Highgate residence 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 was in relation to 1 flat. The unexpired term as at the valuation date was 67.85 years.