The only way is down when it comes to Barnet lease terms. Barnet flats that have a lease term shorter than eighty years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold residencies in Barnet with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Barnet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Summer Teddy, came very close to the eighty-year mark with the lease on his studio apartment in Barnet. In buying his flat 19 years previously, the length of the lease was of little importance. Luckily, he noticed he needed to take action soon on Extending the lease. Teddy was able to extend his lease just under the wire last March. Teddy and the freeholder eventually agreed on a premium of £5,000 . If he had missed the deadline, the premium would have escalated by at least £1,075.
In 2014 we were contacted by Ms G Ramírez who, having took over the lease of a first floor flat in Barnet in February 2004. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Barnet with a long lease were valued about £248,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2087. Taking into account 63 years remaining we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Barnet residence is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 76 years.