The market value of a leasehold property in Seven Sisters is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that formalities can be concluded in advance of the eighty year mark. Current legislation entitles Seven Sisters qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Seven Sisters,the lease extension solicitors that we work with will always be willing 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.
18 months ago Luca, came perilously close to the eighty-year threshold with the lease on his two bedroom apartment in Seven Sisters. Having purchased his flat two decades ago, the length of the lease was of minimal importance. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Luca extended the lease just ahead of time last September. Luca and the landlord in the end agreed on an amount of £5,000 . If the lease had slid lower than eighty years, the amount would have escalated by at least £1,150.
Ms Poppy David took over the lease of a first floor flat in Seven Sisters in November 1995. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparable homes in Seven Sisters with 100 year plus lease were valued around £240,600. The average amount of ground rent was £65 billed yearly. The lease expiry date was in 2087. Given that there were 62 years remaining we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 affected 2 flats. The unexpired term was 74.13 years.