With a domestic leasehold premises in Chipping Barnet, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in Chipping Barnet with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has under eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Chipping Barnet,the lease extension solicitors 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 Chipping Barnet valuers.
Elijah was the the leasehold owner of a 2 bedroom flat in Chipping Barnet on the market with a lease of a little over fifty eight years unexpired. Elijah on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2009 we were e-mailed by Dr Bethany Watson who, having completed a ground floor flat in Chipping Barnet in August 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in Chipping Barnet with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease terminated in 2104. Considering the 78 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Chipping Barnet flat 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 lease term was 76 years.