The closer a residential lease in Muswell Hill gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, more than 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Muswell Hill will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you are eligible for a lease extension. In limited 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 generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Muswell Hill,the lease extension solicitors 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 Muswell Hill valuers.
Last Winter Leo, started to get close to the 80-year mark with the lease on his studio apartment in Muswell Hill. In buying his home two decades ago, the length of the lease was of no bearing. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Leo was able to extend his lease just ahead of time last August. Leo and the freeholder via the management company in the end settled on the final figure of £5,000 . If the lease had slid lower than eighty years, the sum would have escalated by a minimum £1,125.
Dr C Morgan purchased a one bedroom flat in Muswell Hill in May 2006. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical homes in Muswell Hill with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced annually. The lease came to a finish in 2105. Taking into account 79 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 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 was in relation to 1 flat. The unexpired term was 65.21 years.