The only way is down when it comes to Muswell Hill lease terms. Muswell Hill properties that have a remaining term lower than 80 years will drop in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold premises in Muswell Hill with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Muswell Hill,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 Muswell Hill valuers.
Off the back of protracted negotiations with the landlord of her two bedroom apartment in Muswell Hill, Niamh commenced the lease extension process as the 80 year deadline was quickly coming. The lease extension completed in April 2008. The landlord’s fees were restricted to under 650 pounds.
In 2011 we were approached by Dr Aaron Bell who, having took over the lease of a garden flat in Muswell Hill in February 1995. We are asked if we could estimate the price could be to prolong the lease by an additional years. Comparable residencies in Muswell Hill with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected yearly. The lease expired on 27 September 2103. Taking into account 77 years outstanding we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Muswell Hill property 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 was in relation to 1 flat. The unexpired lease term was 65.21 years.