The only way is down when it comes to Palmers Green lease terms. Palmers Green properties that have a residual term fewer than 80 years will reduce in market price even faster, and the cost to extend your lease will go up.
Leasehold premises in Palmers Green with in excess of one hundred years left 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 premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure Palmers Green 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 conveyancer we work with provide it.
After unsuccessful discussions with the landlord of her purpose-built flat in Palmers Green, Imogen commenced the lease extension process as the 80 year deadline was quickly coming. The lease extension completed in April 2008. The landlord’s charges were negotiated to about 650 GBP.
Dr Ethan Rodríguez owned a basement flat in Palmers Green in September 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable properties in Palmers Green with a long lease were in the region of £248,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 21 April 2089. Having 63 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including expenses.
An example of a Lease Extension decision for a Palmers Green flat 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 affected 1 flat. The unexpired term was 81.79 years.