There is no doubt about it a leasehold flat or house in Barnet is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Barnet will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| TSB |
Lease extensions in Barnet can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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 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.
During the course of the last few months Freddie, started to get close to the eighty-year mark with the lease on his purpose- built flat in Barnet. In buying his flat two decades ago, the unexpired term was of no significance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Freddie extended the lease just ahead of time in August. Freddie and the landlord eventually settled on an amount of £6,000 . If the lease had dipped lower than 80 years, the price would have gone up by a minimum £1,075.
Dr Leon Young purchased a one bedroom apartment in Barnet in July 2011. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Barnet with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected quarterly. The lease elapsed on 17 August 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
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 term was 76 years.