Barnet leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Flat owners in Barnet will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
Leasehold premises in Barnet with in excess of 100 years remaining on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Nationwide Building Society | |
| The Mortgage Works | |
| Virgin |
Engaging our service gives you increased control over the value of your Barnet leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her ground floor flat in Barnet, Kirsty started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction completed in February 2010. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. B Martin who, having acquired a studio flat in Barnet in August 2004. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Barnet with an extended lease were in the region of £243,000. The average ground rent payable was £65 collected every twelve months. The lease came to a finish on 23 April 2089. Having 63 years outstanding we calculated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus professional charges.
An example of a Lease Extension case for a Barnet 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 affected 1 flat. The unexpired lease term was 76 years.