It’s a harsh truth that a Friern Barnet residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Friern Barnet property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Friern Barnet will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is conventional wisdom that a property with more than 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 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Friern Barnet can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Friern Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Alex, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Friern Barnet. Having bought his flat twenty years ago, the lease term was of minimal interest. Thankfully, he recognised he needed to take action soon on Extending the lease. Alex arranged for a lease extension just under the wire last March. Alex and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £850.
Mr Jackson Cox completed a newly refurbished apartment in Friern Barnet in July 2000. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical flats in Friern Barnet with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease concluded on 9 July 2098. Having 72 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension decision for a Friern Barnet residence is 34 Poplar Grove in June 2013. The Tribunal directed that the premium for the lease extension should be in the sum of £10,250. This case was in relation to 1 flat.