The market value of a leasehold property in Chipping Barnet is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year mark. Current legislation entitles Chipping Barnet qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Chipping Barnet with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Chipping Barnet can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer 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 Chipping Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Daniel, came seriously near to the 80-year mark with the lease on his first floor apartment in Chipping Barnet. Having bought his property twenty years ago, the unexpired term was of minimal interest. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Daniel extended the lease at the eleventh hour in September. Daniel and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the price would have escalated by at least £1,125.
Mr and Mrs. P Mercier completed a one bedroom flat in Chipping Barnet in September 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Chipping Barnet with 100 year plus lease were worth £208,200. The average ground rent payable was £65 invoiced per annum. The lease expired in 2087. Considering the 61 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 exclusive of fees.
An example of a Lease Extension decision for a Chipping 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 term as at the valuation date was 76 years.