Highgate leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease drops lower than 80 years - otherwise a higher amount will be due. Flat owners in Highgate will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Highgate with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Highgate,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Highgate valuers.
In 2014 Ethan, started to get close to the eighty-year threshold with the lease on his basement flat in Highgate. Having bought his home two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Ethan was able to extend his lease just under the wire in April. Ethan and the landlord subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by a minimum £850.
Mr Edward Collins took over the lease of a garden flat in Highgate in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable premises in Highgate with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease termination date was in 2103. Having 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
An example of a Lease Extension matter before the tribunal for a Highgate property is Flat 2A 19 Shepherds Hill in June 2014. The tribunal concluded in accordance with section 48 and schedule 13 of the Leasehold Reform,Housing and Urban Development Act (the 1993 Act) that the premium payable in respect of the grant of a new lease for the Flat be £24,303 (twenty four thousand three hundred and three pounds) This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 67.85 years.