North Finchley leases on domestic deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in North Finchley will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in North Finchley with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Using our service will provide you enhanced control over the value of your North Finchley leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Felix, started to get close to the 80-year threshold with the lease on his leasehold flat in North Finchley. Having purchased his home two decades ago, the length of the lease was of little interest. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Felix extended the lease at the eleventh hour last April. Felix and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £925.
Last January we were called by Mr and Mrs. R Morgan , who acquired a purpose-built flat in North Finchley in September 2003. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in North Finchley with 100 year plus lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease elapsed in 2095. Considering the 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
An example of a Lease Extension matter before the tribunal for a North Finchley residence 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 residue of the current lease was 76 years.