When it comes to long leasehold premises in New Barnet, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Residents in New Barnet with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has under 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your New Barnet leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a 2 bedroom apartment in New Barnet on the market with a lease of a few days over fifty eight years left. Kian on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr Theo Moore completed a first floor flat in New Barnet in April 2010. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Identical properties in New Barnet with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease finished in 2076. Given that there were 51 years left we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 plus costs.
An example of a Lease Extension decision for a New Barnet flat is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case was in relation to 1 flat. The unexpired term was 76 years.