Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Primrose Hill. Clearly, the length of lease left reduces over time. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Primrose Hill have the legal entitlement to extend the lease for a further ninety years under statute. You should give due attention before putting off your Primrose Hill lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Primrose Hill with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Primrose Hill can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Primrose Hill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her basement apartment in Primrose Hill, Olivia started the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension was finalised in May 2007. The landlord’s costs were negotiated to a tad over 700 GBP.
In 2014 we were contacted by Mr P González who, having acquired a studio flat in Primrose Hill in March 1998. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable residencies in Primrose Hill with 100 year plus lease were in the region of £260,200. The average ground rent payable was £65 invoiced annually. The lease lapsed on 22 February 2091. Considering the 66 years unexpired we calculated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 not including costs.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired lease term was 64.77 years.