The market value of Barnet leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
|Accord Mortgages||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.|
|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.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Lease extensions in Barnet can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor 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 in-depth market knowledge 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.
After protracted negotiations with the landlord of her two bedroom flat in Barnet, Bethan started the lease extension process just as her lease was coming close to the all-important eighty-year threshold. The lease extension completed in November 2005. The landlord’s costs were restricted to a tad over 650 GBP.
Mr and Mrs. I David purchased a garden flat in Barnet in January 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Barnet with 100 year plus lease were valued about £290,000. The average ground rent payable was £45 billed monthly. The lease lapsed in 2096. Given that there were 73 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a Barnet flat 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.