Palmers Green leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Flat owners in Palmers Green will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Palmers Green with in excess of 100 years remaining on the lease are often referred to as ‘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 to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 Palmers Green,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 experience and the close ties they enjoy with Palmers Green valuers.
Last Summer Andrew, came perilously near to the eighty-year mark with the lease on his two bedroom flat in Palmers Green. In buying his home two decades ago, the lease term was of minimal interest. Luckily, he noticed he needed to take steps soon on a lease extension. Andrew extended the lease just under the wire last April. Andrew and the freeholder via the management company subsequently settled on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £875.
Mr and Mrs. N Lewis completed a first floor flat in Palmers Green in October 2006. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical premises in Palmers Green with a long lease were worth £250,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out in 2089. Having 64 years remaining we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of costs.
An example of a Lease Extension case for a Palmers Green premises is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The remaining number of years on the lease was 81.79 years.