When it comes to residential leasehold property in Chipping Barnet, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are fewer than 80 years left. Anyone in Chipping Barnet with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once the lease term has under eighty years remaining, under the current Act the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Chipping Barnet with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with procure Chipping Barnet lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Theo was the the leasehold owner of a 2 bedroom flat in Chipping Barnet being marketed with a lease of a little over 59 years left. Theo informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr H James who, having moved into a one bedroom apartment in Chipping Barnet in September 1997. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparable premises in Chipping Barnet with a long lease were in the region of £255,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2096. Considering the 70 years remaining we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including expenses.
An example of a Lease Extension case for a Chipping 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 related to 1 flat. The remaining number of years on the lease was 76 years.