Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Barnet. Inevitably, the length of lease remaining shortens over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Barnet have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give careful consideration before putting off your Barnet lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Yorkshire Building Society |
Lease extensions in Barnet can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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.
In 2014 Archie, started to get close to the eighty-year mark with the lease on his basement apartment in Barnet. In buying his property two decades ago, the lease term was of minimal significance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Archie arranged for a lease extension just under the wire in April. Archie and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £1,025.
In 2012 we were phoned by Dr David Leroy who, having took over the lease of a purpose-built flat in Barnet in April 2000. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable homes in Barnet with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 collected per annum. The lease terminated on 26 July 2078. Having 52 years unexpired we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.
An example of a Lease Extension matter before the tribunal 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 lease term was 76 years.