Barnet leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Barnet will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Barnet with in excess of one hundred years outstanding on the lease are sometimes 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 service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Lease extensions in Barnet can be a difficult process. We recommend you obtain 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 a wealth of experience procuring Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Callum, came critically close to the 80-year threshold with the lease on his studio apartment in Barnet. Having bought his home two decades ago, the length of the lease was of minimal importance. Fortunately, he realised he would imminently be paying way over the odds for a lease extension. Callum extended the lease at the eleventh hour in June. Callum and the landlord in the end settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £1,025.
In 2014 we were called by Mrs V Bernard who, having moved into a studio apartment in Barnet in September 2000. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Barnet with 100 year plus lease were valued about £240,600. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2087. Given that there were 62 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Barnet premises 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 related to 1 flat. The unexpired lease term was 76 years.