With a domestic leasehold premises in East Finchley, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Anyone in East Finchley with a lease nearing 81 years left should seriously consider extending it sooner than later. When the lease term has under 80 years outstanding, under the current Act the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in East Finchley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Finchley valuers.
Half a year ago Oscar, came seriously close to the 80-year threshold with the lease on his studio flat in East Finchley. In buying his flat two decades ago, the lease term was of little concern. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Oscar extended the lease at the eleventh hour in August. Oscar and the landlord in the end settled on the final figure of £6,000 . If he not met the deadline, the figure would have escalated by at least £1,000.
Mrs Ella Gunderson bought a newly refurbished apartment in East Finchley in July 1997. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in East Finchley with a long lease were worth £200,800. The mid-range ground rent payable was £65 billed monthly. The lease came to a finish in 2085. Taking into account 60 years unexpired we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus professional charges.
An example of a Lease Extension case for a East Finchley flat is Ground Floor 110 Station Road in June 2013. The Tribunal found that the premium payable for a lease extension should be £31,665. This case was in relation to 1 flat. The remaining number of years on the lease was 56.65 years.