Muswell Hill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result 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 should investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Muswell Hill leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Muswell Hill with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Muswell Hill,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Muswell Hill valuers.
Subsequent to protracted discussions with the freeholder of her one bedroom flat in Muswell Hill, Jordan commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work completed in November 2015. The landlord’s costs were negotiated to approximately 500 GBP.
In 2012 we were approached by Mr and Mrs. K García who, having was assigned a lease of a recently refurbished flat in Muswell Hill in January 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Comparative properties in Muswell Hill with a long lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease concluded in 2095. Considering the 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The remaining number of years on the lease was 65.21 years.