Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Upper Holloway. Inevitably, the length of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Upper Holloway have the right to extend the lease for an additional ninety years under legislation. Do give due deliberation before delaying your Upper Holloway lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Upper Holloway can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Upper Holloway lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian was the the leasehold owner of a 2 bedroom flat in Upper Holloway on the market with a lease of fraction over fifty eight years unexpired. Sebastian informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the property.
Last Autumn we were contacted by Ms Kelsey Michel , who owned a one bedroom flat in Upper Holloway in May 2007. We are asked if we could approximate the price could be to prolong the lease by ninety years. Identical flats in Upper Holloway with an extended lease were valued around £280,000. The mid-range ground rent payable was £45 billed yearly. The lease ended in 2095. Having 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last month we were contacted by Mr and Mrs. N Girard , who purchased a studio flat in Upper Holloway in July 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable residencies in Upper Holloway with an extended lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease ended in 2084. Taking into account 58 years outstanding we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including costs.