Tufnell Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Tufnell Park residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Tufnell Park you would be well advised to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Tufnell Park leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Tufnell Park 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.
Last Christmas Riley, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Tufnell Park. In buying his home 18 years ago, the unexpired term was of minimal significance. Luckily, he became aware that he would soon be paying an escalated premium for a lease extension. Riley was able to extend his lease just in the nick of time last September. Riley and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had descended below eighty years, the sum would have increased by at least £1,025.
Mr W Moore was assigned a lease of a one bedroom flat in Tufnell Park in October 2003. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical flats in Tufnell Park with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected annually. The lease ran out in 2105. Considering the 79 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension case for a Tufnell Park 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 was in relation to 1 flat. The unexpired lease term was 64.77 years.