The closer a residential lease in East Finchley gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, over 125 years to run then this decrease may be negligible however there will become a stage when a lease has under than eighty years left 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 consider extending sooner as opposed to later. Many flat owners in East Finchley will qualify for this right; however a lawyer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| Skipton Building Society | 85 years from the date of completion of the mortgage |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in East Finchley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Finchley valuers.
In the wake of 6 months of lengthy negotiations with the landlord of her purpose-built apartment in East Finchley, Lydia commenced the lease extension process as the eighty year mark was swiftly coming. The transaction was concluded in January 2009. The landlord’s fees were kept to an absolute minimum.
Mrs Danielle Wilson purchased a newly refurbished flat in East Finchley in February 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable flats in East Finchley with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 billed quarterly. The lease end date was on 25 September 2071. Having 52 years left we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term as at the valuation date was 56.65 years.