It’s an underpublicised truth that a Seven Sisters residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Seven Sisters property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Seven Sisters will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Seven Sisters 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Seven Sisters can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Seven Sisters lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy correspondence with the freeholder of her ground floor apartment in Seven Sisters, Elizabeth commenced the lease extension process as the eighty year mark was rapidly approaching. The transaction completed in November 2010. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Dr F Martin who, having bought a one bedroom apartment in Seven Sisters in January 2004. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Seven Sisters with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed yearly. The lease ended in 2096. Considering the 71 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.
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 affected 2 flats. The unexpired residue of the current lease was 74.13 years.