It’s a harsh certainty that a East Barnet residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the East Barnet property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term drops below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in East Barnet will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in East Barnet with over 100 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in East Barnet can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 a wealth of experience dealing with East Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Arthur, started to get near to the 80-year threshold with the lease on his first floor apartment in East Barnet. Having purchased his flat two decades ago, the lease term was of no concern. As luck would have it, he recognised he would soon be paying way over the odds for Extending the lease. Arthur was able to extend his lease just under the wire in May. Arthur and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If he not met the deadline, the price would have escalated by a minimum £1,100.
Last Summer we were contacted by Ms Madeleine Parker , who was assigned a lease of a studio apartment in East Barnet in January 2000. We are asked if we could approximate the price would be for a 90 year lease extension. Similar properties in East Barnet with an extended lease were valued about £166,400. The average amount of ground rent was £60 collected annually. The lease finished on 9 July 2079. Taking into account 54 years left we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a East Barnet residence is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case related to 2 flats. The unexpired term was 70.31 years.