As the the remaining lease term of a East Barnet residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Most flat owners in East Barnet will qualify for this right; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in East Barnet with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in East Barnet,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Barnet valuers.
Freddie was the the leasehold proprietor of a high value apartment in East Barnet on the market with a lease of a few days over sixty years left. Freddie informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mrs Catherine Hernández purchased a one bedroom apartment in East Barnet in June 2010. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Similar homes in East Barnet with a long lease were valued about £176,200. The average ground rent payable was £65 invoiced every twelve months. The lease ran out in 2081. Having 56 years as a residual term we calculated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a East Barnet premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case affected 2 flats. The unexpired residue of the current lease was 70.31 years.