Seven Sisters leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher premium will be payable. Flat owners in Seven Sisters will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | 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. |
| 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. |
The conveyancers that we work with handle 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.
14 months ago Alfie, started to get close to the 80-year threshold with the lease on his basement apartment in Seven Sisters. Having purchased his property 19 years previously, the length of the lease was of minimal concern. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Alfie extended the lease at the eleventh hour in May. Alfie and the freeholder subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £1,100.
Last Christmas we were approach by Dr Seth Evans , who bought a one bedroom apartment in Seven Sisters in September 2007. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Seven Sisters with an extended lease were valued about £267,600. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2093. Having 67 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Seven Sisters premises 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 related to 2 flats. The number of years remaining on the existing lease(s) was 74.13 years.