There is no doubt about it a leasehold property in Upper Holloway is a wasting asset as a result of the shortening lease. If the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Upper Holloway will meet the qualifying criteria; nevertheless a conveyancer should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Upper Holloway with in excess of 100 years outstanding 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| 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. |
| National Westminster Bank | 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. |
Irrespective of whether you are a tenant or a landlord in Upper Holloway,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Upper Holloway valuers.
Off the back of protracted discussions with the landlord of her first floor flat in Upper Holloway, Katie initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was concluded in August 2008. The freeholder’s charges were restricted to less than 600 GBP.
Last Winter we were phoned by Dr Emma Moreau , who purchased a purpose-built flat in Upper Holloway in March 2011. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Upper Holloway with a long lease were worth £250,400. The average amount of ground rent was £65 collected quarterly. The lease expired in 2089. Given that there were 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of legals.
In 2012 we were e-mailed by Dr Jasper Wright who, having was assigned a lease of a basement flat in Upper Holloway in November 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Upper Holloway with a long lease were valued around £189,000. The average ground rent payable was £55 collected per annum. The lease elapsed on 7 February 2078. Having 53 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.