It’s an underpublicised truth that a Golders Green residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Golders Green property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Golders Green will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Golders Green with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Golders Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted negotiations with the landlord of her ground floor flat in Golders Green, Rachel initiated the lease extension process as the 80 year mark was rapidly coming. The transaction was concluded in February 2014. The landlord’s charges were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. R Thomas who, having was assigned a lease of a one bedroom flat in Golders Green in March 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Identical residencies in Golders Green with 100 year plus lease were valued about £235,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended on 5 July 2087. Considering the 62 years unexpired we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Golders Green residence 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 affected 1 flat.