When it comes to residential leasehold premises in Tufnell Park, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Tufnell Park with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once the lease term has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in Tufnell Park with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Tufnell Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Tufnell Park valuers.
Twenty four months ago Aaron, started to get close to the 80-year mark with the lease on his two bedroom apartment in Tufnell Park. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Aaron was able to extend his lease at the eleventh hour in July. Aaron and the freeholder via the managing agents in the end settled on the final figure of £5,000 . If the lease had slid to less than 80 years, the sum would have become more exhorbitant by a minimum £875.
In 2013 we were e-mailed by Mr and Mrs. V Wilson who, having took over the lease of a studio flat in Tufnell Park in August 2005. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Tufnell Park with a long lease were worth £270,000. The average amount of ground rent was £55 collected every twelve months. The lease came to a finish on 28 January 2101. Having 75 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Tufnell Park flat 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 remaining number of years on the lease was 64.77 years.