When it comes to long leasehold premises in Barnet, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than 80 years left. Residents in Barnet with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant Act the freeholder can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Barnet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Ben owned a conversion flat in Barnet on the market with a lease of a few days over fifty eight years outstanding. Ben informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Ben to exercise his statutory right. Ben obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
Dr G Williams moved into a purpose-built apartment in Barnet in August 2001. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparative properties in Barnet with a long lease were valued about £206,200. The average amount of ground rent was £60 collected monthly. The lease came to a finish in 2081. Considering the 56 years outstanding we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including professional charges.
An example of a Lease Extension case 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 affected 1 flat. The remaining number of years on the lease was 76 years.