The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Muswell Hill can extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Muswell Hill lease extension. Putting off the costs now simply increases the premium you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Engaging our service gives you better control over the value of your Muswell Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a studio apartment in Muswell Hill on the market with a lease of just over 72 years outstanding. Jackson informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2013 we were called by Mr Charlie Petit who, having was assigned a lease of a garden apartment in Muswell Hill in September 2002. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Identical properties in Muswell Hill with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £55 billed monthly. The lease elapsed on 21 October 2099. Having 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Lease Extension case for a Muswell Hill flat is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case affected 1 flat. The unexpired residue of the current lease was 65.21 years.