Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Hornsey Rise. Clearly, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Hornsey Rise have the right to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Hornsey Rise lease extension. Putting off the cost now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Hornsey Rise,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hornsey Rise valuers.
Twenty four months ago Finn, started to get near to the eighty-year mark with the lease on his studio flat in Hornsey Rise. In buying his flat 19 years ago, the unexpired term was of little importance. Thankfully, he realised he would imminently be paying way over the odds for a lease extension. Finn extended the lease just in the nick of time last March. Finn and the landlord ultimately settled on sum of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £925.
In 2010 we were e-mailed by Dr V Williams who, having took over the lease of a first floor apartment in Hornsey Rise in October 2004. The question was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical homes in Hornsey Rise with 100 year plus lease were worth £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease concluded on 17 April 2103. Taking into account 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
An example of a Freehold Enfranchisement case 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 related to 1 flat. The unexpired residue of the current lease was 71 years.