The closer a residential lease in North London gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in North London will meet the qualifying criteria; however a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in North London with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in North London can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer 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 a wealth of experience dealing with North London lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Mason, started to get close to the eighty-year mark with the lease on his first floor apartment in North London. In buying his property 18 years previously, the length of the lease was of minimal significance. As luck would have it, he recognised he needed to take steps soon on Extending the lease. Mason arranged for a lease extension just ahead of time in May. Mason and the freeholder via the management company in the end settled on a premium of £6,000 . If he not met the deadline, the price would have increased by a minimum £875.
Last May we were e-mailed by Mr Aarav Patel , who owned a purpose-built flat in North London in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical flats in North London with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed on 7 June 2101. Taking into account 76 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a North London premises is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case related to 1 flat. The remaining number of years on the lease was 73.26 years.