Highbury Lease Extension - Free Consultation

Before you progress with your lease extension in Highbury
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Main reasons to commence your Highbury lease extension


Main reasons to commence your Highbury lease extension today:

Increase your lease and increase your Highbury property value

Highbury leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Highbury tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Highbury you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Highbury flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is actioned without delay

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.

Mortgage lenders will not finance a property with a short lease

Almost all banks and building societies require a lengthy amount of time left on any leasehold property before they will contemplate providing a mortgage on it. Even if you don't need a mortgage, you should be conscious that it is likely that someone wishing to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the market price of your property could suffer. Since 2008 the majority of banks and building societies have increased the required minimum lease length that they are willing to accept

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.
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Highbury?

The conveyancing solicitors that we work with handle Highbury 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 conveyancer we work with provide it.

Highbury Lease Extension Example Cases:

Zachary, Highbury, North London,

Zachary owned a studio apartment in Highbury being marketed with a lease of a few days over sixty years left. Zachary on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary obtained expert legal guidance and secured satisfactory deal without going to tribunal and ending up with a market value flat.

Highbury case:

Last Spring we were e-mailed by Mr Jason James , who moved into a one bedroom apartment in Highbury in May 2010. The question was if we could approximate the price would likely be for a ninety year lease extension. Identical properties in Highbury with 100 year plus lease were worth £275,000. The average ground rent payable was £55 invoiced yearly. The lease elapsed in 2101. Taking into account 76 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.

Decision in Hackney

An example of a Lease Extension matter before the tribunal for a Highbury premises is Lower Flat 16A Beatty Road in September 2012. The premium payable was £13,577. The terms of the lease has been agreed between the Applicants and the First Respondent and the Tribunal did not seek to disturb that agreement. This case related to 1 flat.