Unfortunately that a Upper Holloway residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Upper Holloway property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of flat owners in Upper Holloway will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold premises in Upper Holloway with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| TSB | |
| The Mortgage Works | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with procure Upper Holloway 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.
Muhammad owned a 2 bedroom apartment in Upper Holloway being marketed with a lease of fraction over sixty years unexpired. Muhammad informally spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad obtained expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2009 we were approached by Mr Connor Robinson who, having took over the lease of a studio apartment in Upper Holloway in May 2001. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Identical properties in Upper Holloway with a long lease were in the region of £295,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out in 2100. Taking into account 74 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Winter we were approach by Dr L Wilson , who moved into a basement flat in Upper Holloway in June 2011. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Upper Holloway with 100 year plus lease were valued around £248,000. The average amount of ground rent was £65 invoiced annually. The lease lapsed on 24 November 2089. Given that there were 63 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including legals.