The market value of Seven Sisters leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Seven Sisters,the lease extension experts 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.
Two years ago Alexander, came dangerously near to the eighty-year mark with the lease on his basement apartment in Seven Sisters. In buying his flat 19 years ago, the unexpired term was of no importance. As luck would have it, he became aware that he needed to take action soon on a lease extension. Alexander extended the lease just in the nick of time in September. Alexander and the landlord who owned the flat above in the end settled on sum of £6,000 . If he not met the deadline, the sum would have increased by a minimum £875.
In 2013 we were called by Dr K Clarke who, having took over the lease of a recently refurbished apartment in Seven Sisters in September 2010. The dilemma was if we could estimate the premium would likely be to extend the lease by an additional years. Comparative residencies in Seven Sisters with 100 year plus lease were in the region of £230,800. The average ground rent payable was £60 billed every twelve months. The lease concluded on 9 February 2085. Given that there were 60 years unexpired we calculated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Seven Sisters flat 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.