The closer a residential lease in Muswell Hill gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Muswell Hill will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Muswell Hill with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Muswell Hill leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her leasehold apartment in Muswell Hill, Leah started the lease extension process as the eighty year deadline was fast nearing. The transaction completed in November 2006. The landlord’s costs were restricted to a tad over 450 GBP.
Last Autumn we were e-mailed by Mrs U Davies , who owned a ground floor flat in Muswell Hill in May 2008. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical residencies in Muswell Hill with an extended lease were worth £280,000. The average ground rent payable was £55 billed per annum. The lease lapsed on 17 May 2101. Having 77 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Muswell Hill flat is Flat B 10 Grove Avenue in October 2013. Following a vesting order Clerkenwell and Shoreditch County Court 3rd July 2013 The tribunal determines that the premium payable for the lease extension was £36,215.00 This case affected 1 flat. The unexpired residue of the current lease was 65.21 years.