With a residential leasehold property in Muswell Hill, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Muswell Hill with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Muswell Hill with in excess of 100 years outstanding 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 estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Muswell Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Elijah, started to get near to the eighty-year threshold with the lease on his first floor apartment in Muswell Hill. Having purchased his flat 18 years previously, the unexpired term was of little importance. Thankfully, he became aware that he needed to take action soon on Extending the lease. Elijah was able to extend his lease just under the wire in June. Elijah and the landlord subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have escalated by at least £875.
In 2009 we were phoned by Mr and Mrs. W Walker who, having owned a basement flat in Muswell Hill in November 1997. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Muswell Hill with a long lease were valued about £280,000. The average ground rent payable was £55 collected annually. The lease elapsed on 27 May 2103. Given that there were 78 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired term was 65.21 years.