The only way is down when it comes to Islington lease terms. Islington flats that have a remaining term fewer than 80 years will drop in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold premises in Islington with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 landlord in Islington,the lease extension solicitors 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.
Half a year ago Tyler, came dangerously close to the 80-year threshold with the lease on his first floor flat in Islington. Having purchased his flat two decades ago, the lease term was of no relevance. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Tyler arranged for a lease extension just under the wire last March. Tyler and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If he not met the deadline, the figure would have become more costly by at least £975.
Dr Kai Simon bought a first floor flat in Islington in November 2010. The dilemma was if we could approximate the premium would be to extend the lease by ninety years. Similar residencies in Islington with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed in 2093. Considering the 68 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Islington premises 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 remaining number of years on the lease was 80.5 years.