As the the remaining lease term of a East Finchley residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in East Finchley will qualify for this right; nevertheless a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in East Finchley with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your East Finchley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a 2 bedroom flat in East Finchley on the market with a lease of fraction over sixty years remaining. Oliver on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last June we were approach by Mr and Mrs. H Robinson , who completed a ground floor flat in East Finchley in February 2002. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in East Finchley with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced annually. The lease termination date was in 2096. Given that there were 71 years left we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.
An example of a Lease Extension decision for a East Finchley premises 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 number of years remaining on the existing lease(s) was 56.65 years.