On the balance of probabilities if you own a flat in Islington you actually own a long leasehold interest over your property
Leasehold properties in Islington with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Islington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Islington valuers.
In recent months Edward, started to get close to the eighty-year threshold with the lease on his garden flat in Islington. In buying his property twenty years previously, the length of the lease was of no bearing. Luckily, he realised he needed to take action soon on Extending the lease. Edward was able to extend his lease just in the nick of time last August. Edward and the freeholder eventually agreed on an amount of £6,000 . If the lease had slipped below 80 years, the price would have become more exhorbitant by a minimum £1,025.
Ms Jade Campbell was assigned a lease of a first floor flat in Islington in September 1997. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical premises in Islington with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected monthly. The lease came to a finish in 2103. Considering the 78 years unexpired we estimated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of fees.
An example of a Lease Extension decision for a Islington flat 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 related to 1 flat. The number of years remaining on the existing lease(s) was 80.5 years.