The market value of a leasehold property in Hornsey Rise is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed well before the 80 year mark. Current legislation entitles Hornsey Rise qualifying lessees to an additional term of ninety years in addition to the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hornsey Rise can be a difficult process. We recommend you get 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 dealing with Hornsey Rise lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October John, started to get close to the eighty-year threshold with the lease on his one bedroom apartment in Hornsey Rise. In buying his flat 19 years previously, the lease term was of minimal relevance. Luckily, he noticed he needed to take action soon on a lease extension. John extended the lease at the eleventh hour in August. John and the freeholder via the managing agents in the end agreed on a premium of £5,000 . If the lease had gone to less than eighty years, the premium would have gone up by a minimum £975.
Last Christmas we were phoned by Mr and Mrs. O Bailey , who purchased a garden flat in Hornsey Rise in March 1999. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Identical residencies in Hornsey Rise with a long lease were worth £257,800. The average amount of ground rent was £65 collected every twelve months. The lease terminated in 2091. Having 65 years remaining we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
An example of a Freehold Enfranchisement decision for a Hornsey Rise property 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 related to 1 flat. The remaining number of years on the lease was 71 years.