When it comes to residential leasehold premises in Hornsey, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Hornsey with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the current statute the freeholder is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hornsey can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 a wealth of experience dealing with Hornsey 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 Elijah, came very close to the 80-year mark with the lease on his two bedroom apartment in Hornsey. Having purchased his flat two decades ago, the lease term was of no bearing. Thankfully, he realised he needed to take action soon on a lease extension. Elijah extended the lease just in the nick of time last May. Elijah and the landlord ultimately settled on sum of £6,000 . If the lease had slid below 80 years, the figure would have become more costly by a minimum £975.
In 2011 we were contacted by Mr and Mrs. M Girard who, having purchased a first floor apartment in Hornsey in May 1997. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable homes in Hornsey with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 19 September 2092. Taking into account 66 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.
An example of a Freehold Enfranchisement decision for a Hornsey premises is 7 Aubrey Road in December 2010. By an order of the county court on 15/12/2009 the freehold interest inthe Property known as 7 Aubrey Road London N8 9HH (the Property) and registered at HM Land Registry under title number MX439124 was vested in the applicants. The Tribunal calculated that the total enfranchisement premium, assessed in accordance with Schedule 6 to the Act, was £54,633. This case related to 3 flats. The number of years remaining on the existing lease(s) was 73.27 years.