East Finchley leases on domestic deteriorating in value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in East Finchley will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and formalities to follow once the process has started so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in East Finchley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Finchley valuers.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in East Finchley, Kate commenced the lease extension process as the eighty year mark was fast nearing. The legal work was finalised in July 2011. The landlord’s costs were restricted to a tad over 450 GBP.
In 2010 we were e-mailed by Mr and Mrs. Y Roux who, having completed a basement flat in East Finchley in March 2003. We are asked if we could estimate the price could be to prolong the lease by ninety years. Comparable premises in East Finchley with 100 year plus lease were worth £191,000. The mid-range amount of ground rent was £65 billed per annum. The lease expired in 2083. Having 58 years left we estimated the premium to the landlord for the lease extension to be within £23,800 and £27,400 not including expenses.
An example of a Lease Extension decision 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 related to 1 flat. The unexpired residue of the current lease was 56.65 years.