The only way is down when it comes to Hornsey lease terms. Hornsey properties that have a residual term less than than 80 years will de-escalate in value even faster, and the cost of extending your lease will rise.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Hornsey can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 in-depth market knowledge 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.
Twenty four months ago Thomas, started to get near to the 80-year mark with the lease on his studio flat in Hornsey. In buying his flat two decades ago, the length of the lease was of minimal importance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Thomas arranged for a lease extension just under the wire last January. Thomas and the freeholder subsequently agreed on sum of £6,000 . If the lease had dipped below 80 years, the amount would have escalated by a minimum £1,025.
In 2012 we were called by Mr and Mrs. G Morel who, having was assigned a lease of a studio apartment in Hornsey in November 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Hornsey with 100 year plus lease were valued around £246,800. The average ground rent payable was £60 collected per annum. The lease ran out on 23 August 2075. Having 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.
An example of a Freehold Enfranchisement decision for a Hornsey flat 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 affected 3 flats. The unexpired term as at the valuation date was 73.27 years.