Palmers Green leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Palmers Green will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Palmers Green with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Palmers Green can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 dealing with 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.
Owen owned a conversion flat in Palmers Green on the market with a lease of a little over 59 years outstanding. Owen on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to invoke his statutory right. Owen obtained expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. T Laurent , who took over the lease of a one bedroom apartment in Palmers Green in September 1995. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Identical properties in Palmers Green with a long lease were worth £189,000. The mid-range ground rent payable was £55 billed quarterly. The lease termination date was on 27 January 2079. Given that there were 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 81.79 years.