The market value of a leasehold property in Primrose Hill is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the eighty year threshold. Statute entitles Primrose Hill qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Primrose Hill with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| Royal Bank of Scotland | 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. |
Engaging our service gives you increased control over the value of your Primrose Hill leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Freddie, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Primrose Hill. Having bought his flat two decades ago, the unexpired term was of minimal significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Freddie arranged for a lease extension at the eleventh hour last June. Freddie and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the price would have escalated by a minimum £1,000.
Mrs N Díaz acquired a studio apartment in Primrose Hill in October 2012. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparable premises in Primrose Hill with a long lease were worth £189,000. The average ground rent payable was £55 billed every twelve months. The lease expired on 23 March 2079. Having 53 years left we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
An example of a Lease Extension case for a Primrose Hill premises 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 affected 1 flat. The unexpired lease term was 64.77 years.