The closer a residential lease in Golders Green nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Golders Green will qualify for this right; that being said a conveyancer should be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Golders Green with over 100 years left 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 to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Lease extensions in Golders Green can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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 Golders Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Eli, started to get close to the 80-year mark with the lease on his studio apartment in Golders Green. In buying his flat 18 years ago, the length of the lease was of little interest. Fortunately, he recognised he needed to take action soon on a lease extension. Eli extended the lease at the eleventh hour in May. Eli and the landlord ultimately settled on a premium of £5,000 . If the lease had dropped to less than 80 years, the premium would have increased by at least £1,025.
In 2012 we were e-mailed by Mrs Kayleigh Taylor who, having took over the lease of a basement apartment in Golders Green in July 2011. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable homes in Golders Green with an extended lease were worth £295,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish on 16 October 2100. Considering the 75 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension decision 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 was in relation to 1 flat.