The only way is down when it comes to Golders Green lease terms. Golders Green flats that have a remaining term fewer than eighty years will drop in market price at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Golders Green with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Golders Green,the lease extension solicitors 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 Golders Green valuers.
Jamie was the the leasehold proprietor of a 2 bedroom apartment in Golders Green on the market with a lease of a few days over 61 years left. Jamie on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jamie to invoke his statutory right. Jamie procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Dr Jack Lefèvre completed a garden flat in Golders Green in November 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Golders Green with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 collected every twelve months. The lease finished on 25 August 2103. Having 78 years remaining we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Golders Green property is Flat A 372 Cricklewood Lane in January 2013. The Tribunal decided that the premium for the extended lease should be £5,750.00 and that the terms of the new lease should be those set out in annex to the decsion This case related to 1 flat.