Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in East Finchley. Clearly, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in East Finchley have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before delaying your East Finchley lease extension. Putting off that expense now simply increases the price you will ultimately incur for a lease extension
Leasehold properties in East Finchley with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The lawyers that we work with procure East Finchley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of lengthy correspondence with the freeholder of her basement flat in East Finchley, Isobel started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction completed in October 2006. The landlord’s fees were restricted to less than 700 pounds.
In 2014 we were called by Mrs Rhiannon Cooper who, having owned a one bedroom flat in East Finchley in October 1996. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar residencies in East Finchley with 100 year plus lease were worth £270,000. The average amount of ground rent was £55 collected quarterly. The lease elapsed in 2099. Having 74 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension decision for a East Finchley property is Ground Floor 110 Station Road in June 2013. The Tribunal found that the premium payable for a lease extension should be £31,665. This case was in relation to 1 flat. The unexpired lease term was 56.65 years.