East Barnet leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in East Barnet will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in East Barnet with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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; |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your East Barnet leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago William, came seriously close to the 80-year mark with the lease on his studio flat in East Barnet. In buying his flat twenty years previously, the unexpired term was of no concern. Thankfully, he realised he needed to take action soon on a lease extension. William arranged for a lease extension just in the nick of time in July. William and the freeholder in the end settled on a premium of £5,500 . If the lease had dipped to less than eighty years, the amount would have gone up by a minimum £1,150.
Dr Harrison Bennett moved into a newly refurbished flat in East Barnet in October 2005. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Similar premises in East Barnet with 100 year plus lease were worth £290,000. The average ground rent payable was £60 invoiced monthly. The lease came to a finish on 24 August 2106. Given that there were 80 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including legals.
An example of a Freehold Enfranchisement decision for a East Barnet premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case was in relation to 2 flats. The unexpired lease term was 70.31 years.