Chances are that where you own a flat in Friern Barnet you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Friern Barnet leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Austin, started to get near to the eighty-year mark with the lease on his leasehold apartment in Friern Barnet. Having purchased his flat 18 years ago, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Austin was able to extend his lease at the eleventh hour last May. Austin and the landlord in the end agreed on the final figure of £5,000 . If the lease had dipped to less than 80 years, the price would have become more exhorbitant by a minimum £1,050.
In 2011 we were approached by Mrs Jasmine Mason who, having purchased a studio apartment in Friern Barnet in June 2000. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Friern Barnet with 100 year plus lease were valued around £280,000. The average ground rent payable was £55 billed every twelve months. The lease end date was on 28 April 2103. Given that there were 77 years left we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension decision for a Friern Barnet property 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.