As the the remaining lease term of a Islington domestic lease lessens so does its value and therefore the value of your property. If the lease has, over 125 years to run then this decrease may be negligible however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Many flat owners in Islington will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Islington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Islington valuers.
Last October Joseph, started to get close to the eighty-year threshold with the lease on his studio apartment in Islington. Having purchased his flat 18 years ago, the length of the lease was of no relevance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Joseph was able to extend his lease just in the nick of time in March. Joseph and the landlord eventually agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the amount would have escalated by at least £1,125.
Mr I Anderson bought a first floor apartment in Islington in June 2009. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable properties in Islington with a long lease were in the region of £267,600. The average ground rent payable was £65 collected monthly. The lease ended on 8 August 2092. Given that there were 67 years outstanding we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus costs.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term as at the valuation date was 80.5 years.