When it comes to residential leasehold premises in Barnet, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are fewer than eighty years remaining. Residents in Barnet with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When a lease has under 80 years remaining, under the current Act the landlord can calculate and levy a larger premium, based on a technical calculation, known as “marriage value” which is due.
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 left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Barnet valuers.
Charlie owned a 2 bedroom apartment in Barnet being sold with a lease of a few days over 72 years outstanding. Charlie on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2013 we were phoned by Mrs P Gómez who, having moved into a basement flat in Barnet in January 1995. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative properties in Barnet with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced yearly. The lease expired on 26 March 2081. Having 55 years left we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired residue of the current lease was 76 years.