Camden leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips below 80 years - otherwise a higher premium will be due. Flat owners in Camden will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Camden with in excess of one hundred years remaining on the lease are often 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you better control over the value of your Camden leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a studio apartment in Camden on the market with a lease of fraction over fifty eight years unexpired. Aiden on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2013 we were phoned by Mr and Mrs. L Hernández who, having owned a basement apartment in Camden in January 2003. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Comparable homes in Camden with a long lease were valued about £208,600. The average ground rent payable was £60 billed monthly. The lease termination date was on 4 June 2082. Taking into account 57 years left we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Camden premises 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 remaining number of years on the lease was 64.77 years.