Hornsey Rise leases on residential deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be payable. Flat owners in Hornsey Rise will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | 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. |
The conveyancing solicitors that we work with undertake Hornsey Rise lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Two years ago Riley, came dangerously close to the eighty-year mark with the lease on his first floor apartment in Hornsey Rise. Having purchased his flat 19 years previously, the lease term was of little interest. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Riley arranged for a lease extension just under the wire last June. Riley and the freeholder ultimately agreed on sum of £5,000 . If he had missed the deadline, the sum would have increased by at least £950.
Ms B Turner acquired a ground floor flat in Hornsey Rise in July 2000. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable properties in Hornsey Rise with 100 year plus lease were valued around £189,000. The mid-range ground rent payable was £55 collected yearly. The lease terminated on 20 April 2078. Considering the 53 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hornsey Rise flat is 51 Lorne Road in November 2009. The price Payable as decided by the tribunal for the freehold reversion was £27,000. The valuation follows the order of the County Court made on 3 April 2008 granting a vesting order. This case was in relation to 1 flat. The unexpired lease term was 71 years.