When it comes to long leasehold property in Tufnell Park, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years left. Leasehold owners in Tufnell Park with a lease drawing near to 81 years left should seriously think of extending it without delay. Once a lease has fewer than eighty years remaining, under the relevant Act the freeholder can calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Tufnell Park with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Engaging our service gives you better control over the value of your Tufnell Park leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben owned a high value apartment in Tufnell Park on the market with a lease of a few days over 59 years remaining. Ben on an informal basis contacted his freeholder 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 £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2014 we were contacted by Mr Jonathan Garcia who, having moved into a one bedroom apartment in Tufnell Park in August 2000. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Identical premises in Tufnell Park with an extended lease were valued about £260,000. The average ground rent payable was £50 collected per annum. The lease ran out on 11 July 2098. Given that there were 72 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Tufnell Park property 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 term as at the valuation date was 64.77 years.