With a domestic leasehold property in Seven Sisters, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Seven Sisters with a lease nearing 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the current statute the landlord can calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Seven Sisters,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Seven Sisters valuers.
In the wake of 9 months of lengthy correspondence with the freeholder of her studio apartment in Seven Sisters, Isabelle initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was concluded in October 2005. The freeholder’s charges were kept to an absolute minimum.
Last January we were e-mailed by Mr and Mrs. M Michel , who owned a basement apartment in Seven Sisters in October 2005. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Similar flats in Seven Sisters with a long lease were valued around £216,000. The average ground rent payable was £60 collected quarterly. The lease ended in 2083. Given that there were 58 years as a residual term we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Seven Sisters residence is 22 Wakefield Road in January 2012. Following a vesting order Clerkenwell and Shoreditch County Court under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993 on 9th May 2011 the Tribunal decided that the price that the Applicant for the freehold interest should pay is £17,400 This case related to 2 flats. The unexpired term as at the valuation date was 74.13 years.