It’s a harsh truth that a Upper Holloway residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Upper Holloway property market.Where your lease has approximately 90 years left, you need to 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 under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Upper Holloway will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Upper Holloway with in excess of 100 years outstanding 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Upper Holloway can be a difficult process. We recommend you get guidance from a lawyer and valuer 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.
Last year Dexter, came dangerously close to the eighty-year threshold with the lease on his studio flat in Upper Holloway. Having bought his flat 19 years ago, the length of the lease was of little interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Dexter extended the lease at the eleventh hour last April. Dexter and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had slipped below eighty years, the premium would have become more costly by a minimum £875.
Last year we were called by Mr and Mrs. A Walker , who bought a purpose-built flat in Upper Holloway in October 2010. We are asked if we could estimate the price could be for a ninety year lease extension. Comparative flats in Upper Holloway with a long lease were valued around £171,800. The average amount of ground rent was £55 invoiced per annum. The lease expired on 14 November 2076. Having 50 years outstanding we estimated the premium to the landlord to extend the lease to be within £33,300 and £38,400 plus professional charges.
Dr P Clark took over the lease of a one bedroom apartment in Upper Holloway in September 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical flats in Upper Holloway with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease ended on 13 August 2096. Taking into account 70 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.