The only way is down when it comes to Barnet lease terms. Barnet properties that have a lease term less than than eighty years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold premises in Barnet with in excess of one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Barnet,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnet valuers.
Last Winter Jack, came critically near to the 80-year mark with the lease on his two bedroom apartment in Barnet. In buying his flat twenty years ago, the length of the lease was of no relevance. Luckily, he noticed he needed to take action soon on Extending the lease. Jack was able to extend his lease just in the nick of time in August. Jack and the freeholder ultimately settled on a premium of £5,000 . If he not met the deadline, the price would have gone up by a minimum £950.
Last month we were approach by Mr and Mrs. F Brooks , who took over the lease of a garden apartment in Barnet in February 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Barnet with a long lease were worth £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease elapsed on 1 September 2084. Considering the 58 years unexpired we estimated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.
An example of a Lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 76 years.