Highbury leases on residential deteriorating in value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Highbury will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same 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 ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Highbury,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highbury valuers.
David owned a conversion flat in Highbury being marketed with a lease of a little over 59 years unexpired. David on an informal basis spoke with his landlord a well known Bristol-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 £50 annually. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mrs Natasha García purchased a one bedroom apartment in Highbury in January 2012. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparative homes in Highbury with 100 year plus lease were valued about £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 11 October 2093. Given that there were 69 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension decision for a Highbury residence 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 affected 1 flat.