The only way is down when it comes to Hornsey lease terms. Hornsey properties that have a lease term less than than 80 years will de-escalate in value even faster, and the cost of extending your lease will rise.
Leasehold residencies in Hornsey with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Hornsey,the lease extension solicitors 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 valuers.
Last October John, came seriously near to the eighty-year threshold with the lease on his purpose- built flat in Hornsey. Having purchased his flat two decades ago, the lease term was of minimal relevance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. John was able to extend his lease at the eleventh hour last May. John and the freeholder eventually settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £925.
Mrs T Allen took over the lease of a studio apartment in Hornsey in March 2012. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Hornsey with 100 year plus lease were worth £260,000. The average ground rent payable was £50 collected monthly. The lease finished in 2098. Given that there were 72 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Hornsey property is 7 Aubrey Road in December 2010. By an order of the county court on 15/12/2009 the freehold interest inthe Property known as 7 Aubrey Road London N8 9HH (the Property) and registered at HM Land Registry under title number MX439124 was vested in the applicants. The Tribunal calculated that the total enfranchisement premium, assessed in accordance with Schedule 6 to the Act, was £54,633. This case was in relation to 3 flats. The remaining number of years on the lease was 73.27 years.