With a long leasehold premises in East Finchley, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in East Finchley with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. When the lease term has below eighty years outstanding, under the current Act the landlord can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date 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. |
| 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 |
Regardless of whether you are a tenant or a landlord in East Finchley,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Finchley valuers.
Last year Liam, started to get near to the 80-year threshold with the lease on his leasehold flat in East Finchley. Having purchased his home two decades ago, the lease term was of little interest. Fortunately, he recognised he needed to take action soon on Extending the lease. Liam extended the lease just in the nick of time in June. Liam and the landlord eventually settled on the final figure of £6,000 . If the lease had fallen lower than eighty years, the premium would have escalated by a minimum £975.
Ms Georgia Gray acquired a ground floor apartment in East Finchley in September 2004. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable homes in East Finchley with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £60 billed monthly. The lease terminated in 2106. Taking into account 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.
An example of a Lease Extension case for a East Finchley flat 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.