As the length of the unexpired term of a Barnet residential lease decreases so does its value and therefore the value of your property. If the lease has, in excess of 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner rather than later. The majority of flat owners in Barnet will meet the qualifying criteria; however a conveyancing solicitor will be able to confirm if you qualify 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 considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Barnet leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the landlord of her ground floor flat in Barnet, Bethan commenced the lease extension process as the 80 year threshold was fast coming. The transaction was concluded in February 2014. The freeholder’s fees were restricted to below 450 GBP.
Last May we were called by Dr Katie Patel , who purchased a first floor apartment in Barnet in May 2007. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Barnet with 100 year plus lease were in the region of £189,000. The mid-range ground rent payable was £55 billed yearly. The lease concluded in 2079. Having 53 years remaining we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.
An example of a Lease Extension decision for a Barnet property 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 was in relation to 1 flat. The unexpired lease term was 76 years.