For those whose Hornsey home is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Hornsey with over one hundred years left on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your Hornsey leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Aarav, started to get near to the 80-year threshold with the lease on his purpose- built flat in Hornsey. In buying his property two decades ago, the lease term was of minimal interest. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Aarav was able to extend his lease just under the wire last January. Aarav and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by at least £1,100.
Ms I Gómez took over the lease of a ground floor flat in Hornsey in October 2007. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Hornsey with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed yearly. The lease concluded in 2081. Given that there were 56 years outstanding we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Hornsey flat 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 related to 3 flats. The unexpired residue of the current lease was 73.27 years.