Muswell Hill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Muswell Hill tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Muswell Hill you would be well advised to see if your lease has between 70 and ninety years left. There are good reasons why a Muswell Hill flat owner with a lease having around eighty years remaining should take steps to make sure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The conveyancing solicitors that we work with handle Muswell Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to lengthy correspondence with the landlord of her garden apartment in Muswell Hill, Jordan initiated the lease extension process as the 80 year threshold was rapidly nearing. The legal work was finalised in April 2007. The freeholder’s costs were restricted to a tad over 700 pounds.
Mrs Rebecca González owned a garden apartment in Muswell Hill in October 2010. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable premises in Muswell Hill with an extended lease were valued about £256,600. The average amount of ground rent was £60 collected per annum. The lease expired in 2078. Having 52 years left we calculated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus expenses.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The remaining number of years on the lease was 65.21 years.