Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Chipping Barnet. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the property has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Chipping Barnet have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Chipping Barnet lease extension. Holding off that expense now simply increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Chipping Barnet can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience 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.
Trailing unsuccessful correspondence with the landlord of her basement flat in Chipping Barnet, Chantelle started the lease extension process just as the lease was approaching the all-important 80-year deadline. The transaction was concluded in August 2014. The landlord’s costs were restricted to slightly above 650 pounds.
Last Spring we were contacted by Dr P Parker , who purchased a basement flat in Chipping Barnet in June 2011. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Chipping Barnet with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 collected monthly. The lease end date was in 2100. Having 75 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
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 affected 1 flat. The unexpired lease term was 76 years.