Finchley leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Finchley will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Finchley leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Jason, started to get near to the 80-year threshold with the lease on his purpose- built flat in Finchley. Having bought his property 19 years ago, the lease term was of no importance. Luckily, he became aware that he would imminently be paying way over the odds for Extending the lease. Jason was able to extend his lease at the eleventh hour in June. Jason and the landlord eventually settled on an amount of £5,000 . If the lease had descended lower than 80 years, the amount would have increased by at least £1,000.
In 2012 we were approached by Dr V Lefèvre who, having was assigned a lease of a one bedroom apartment in Finchley in July 2001. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparative properties in Finchley with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out on 20 November 2084. Given that there were 60 years remaining we calculated the compensation to the landlord to extend the lease to be within £24,700 and £28,600 plus fees.
An example of a Lease Extension matter before the tribunal for a Finchley residence 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 unexpired residue of the current lease was 56.65 years.