With a domestic leasehold premises in Islington, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Leasehold owners in Islington with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has under 80 years remaining, under the current Act the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Islington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Islington valuers.
Off the back of protracted discussions with the freeholder of her one bedroom flat in Islington, Yasmin initiated the lease extension process just as the lease was coming close to the all-important 80-year mark. The lease extension was concluded in November 2015. The landlord’s charges were kept to an absolute minimum.
In 2011 we were phoned by Ms Maisie Bailey who, having bought a first floor apartment in Islington in June 2012. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable flats in Islington with an extended lease were worth £218,400. The mid-range amount of ground rent was £60 collected yearly. The lease terminated on 22 January 2085. Taking into account 59 years unexpired we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Islington property is 5C Stoke Newington Road in April 2010. the Tribunal therefore concludes that the premium to be paid for the extended lease is £700.00 This case was in relation to 1 flat. The unexpired residue of the current lease was 80.5 years.