Primrose Hill leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Primrose Hill enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Primrose Hill you really ought to check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Primrose Hill with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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. |
The lawyers that we work with procure Primrose Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing lengthy correspondence with the landlord of her leasehold flat in Primrose Hill, Natasha initiated the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in August 2008. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mrs P Lefebvre who, having bought a purpose-built flat in Primrose Hill in October 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative premises in Primrose Hill with 100 year plus lease were valued about £225,800. The average amount of ground rent was £60 billed every twelve months. The lease ended on 26 August 2085. Having 60 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 not including expenses.
An example of a Lease Extension matter before the tribunal for a Primrose Hill flat 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 term was 64.77 years.