Hornsey Rise leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Hornsey Rise will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Hornsey Rise,the lease extension experts that we work with will always be happy 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.
During the course of the last few months Eliot, started to get close to the eighty-year threshold with the lease on his leasehold flat in Hornsey Rise. In buying his home two decades ago, the lease term was of no significance. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Eliot arranged for a lease extension just under the wire in June. Eliot and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by at least £875.
Mr and Mrs. F Sharif bought a one bedroom flat in Hornsey Rise in February 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Hornsey Rise with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease ended in 2081. Having 56 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Hornsey Rise residence 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.