The market value of Primrose Hill leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than eighty years
Leasehold properties in Primrose Hill with in excess of one hundred years unexpired 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 freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Primrose Hill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Primrose Hill valuers.
In recent months Benjamin, came precariously near to the 80-year threshold with the lease on his ground floor flat in Primrose Hill. In buying his property 18 years previously, the lease term was of minimal interest. Fortunately, he noticed he needed to take action soon on a lease extension. Benjamin arranged for a lease extension just under the wire last June. Benjamin and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,150.
Last February we were called by Mrs B Cook , who acquired a one bedroom apartment in Primrose Hill in July 1996. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Identical residencies in Primrose Hill with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 billed annually. The lease expired in 2089. Taking into account 63 years remaining we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus fees.
An example of a Lease Extension decision for a Primrose Hill property is Flat 2 27 Mackeson Road in December 2012. The Tribunal assessed the value of the lease extension premium at £35,435 and rounded the figure to £35,500 This case was in relation to 1 flat. The unexpired term was 64.77 years.