Barnet residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Barnet with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Lease extensions in Barnet can be a difficult process. We recommend you get professional help 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 dealing with Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Reuben, started to get close to the eighty-year threshold with the lease on his garden flat in Barnet. Having purchased his flat two decades ago, the length of the lease was of no interest. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Reuben arranged for a lease extension just in the nick of time in April. Reuben and the landlord ultimately settled on sum of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by at least £975.
Ms U Murphy was assigned a lease of a ground floor flat in Barnet in April 2011. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical flats in Barnet with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished in 2104. Given that there were 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension matter before the tribunal for a Barnet property 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 residue of the current lease was 76 years.