There is no doubt about it a leasehold property in Seven Sisters is a wasting asset as a result of the shortening lease. Where the residual term has, over 100 years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Seven Sisters will meet the qualifying criteria; nevertheless a conveyancer will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Santander |
The conveyancing solicitors that we work with undertake Seven Sisters 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 lawyer we work with provide it.
Half a year ago Jamie, came perilously near to the eighty-year threshold with the lease on his studio apartment in Seven Sisters. Having purchased his flat twenty years previously, the unexpired term was of minimal concern. Fortunately, he became aware that he needed to take steps soon on a lease extension. Jamie arranged for a lease extension at the eleventh hour last January. Jamie and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If the lease had slipped to less than eighty years, the premium would have become more costly by at least £1,025.
In 2014 we were called by Mr T Taylor who, having completed a first floor flat in Seven Sisters in February 1999. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical premises in Seven Sisters with a long lease were valued about £230,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease came to a finish on 15 October 2086. Taking into account 60 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.
An example of a Freehold Enfranchisement decision for a Seven Sisters property is 22 Wakefield Road in January 2012. Following a vesting order Clerkenwell and Shoreditch County Court under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993 on 9th May 2011 the Tribunal decided that the price that the Applicant for the freehold interest should pay is £17,400 This case affected 2 flats. The unexpired term was 74.13 years.