With a domestic leasehold property in Primrose Hill, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years left. Residents in Primrose Hill with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has under eighty years remaining, under the current Act the freeholder can calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Primrose Hill leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Caleb was the the leasehold proprietor of a conversion flat in Primrose Hill on the market with a lease of a few days over sixty years unexpired. Caleb informally spoke with 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 subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
Ms E Turner owned a basement flat in Primrose Hill in January 2007. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative flats in Primrose Hill with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 10 March 2078. Given that there were 53 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including legals.
An example of a Lease Extension decision for a Primrose Hill residence is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case related to 1 flat. The unexpired lease term was 64.77 years.