Unfortunately that a Hornsey residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Hornsey property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Hornsey will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Hornsey with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Hornsey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hornsey valuers.
Last October Jacob, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Hornsey. Having bought his property 18 years previously, the length of the lease was of little concern. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Jacob arranged for a lease extension at the eleventh hour last May. Jacob and the freeholder ultimately agreed on sum of £5,500 . If the lease had dipped below eighty years, the amount would have increased by a minimum £950.
Last Summer we were phoned by Dr H Cook , who acquired a basement apartment in Hornsey in June 2009. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Identical premises in Hornsey with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 invoiced quarterly. The lease expired on 28 July 2077. Given that there were 52 years outstanding we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 plus legals.
An example of a Freehold Enfranchisement case for a Hornsey property 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 unexpired lease term was 73.27 years.