The market value of Palmers Green leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Palmers Green can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Palmers Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Harry, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Palmers Green. Having purchased his flat 18 years ago, the lease term was of little interest. Fortunately, he became aware that he needed to take steps soon on a lease extension. Harry extended the lease just ahead of time last August. Harry and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had dipped to less than 80 years, the premium would have increased by a minimum £1,075.
Last Winter we were approach by Mr Ollie Peterson , who purchased a basement apartment in Palmers Green in September 2011. We are asked if we could estimate the price could be for a ninety year lease extension. Identical homes in Palmers Green with 100 year plus lease were in the region of £257,800. The average ground rent payable was £65 collected every twelve months. The lease concluded in 2089. Given that there were 65 years left we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 not including costs.
An example of a Lease Extension decision for a Palmers Green residence 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 related to 1 flat. The unexpired term as at the valuation date was 81.79 years.