When it comes to residential leasehold property in East Finchley, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than 80 years remaining. Residents in East Finchley with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in East Finchley can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring East Finchley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Callum, started to get close to the eighty-year threshold with the lease on his one bedroom flat in East Finchley. In buying his flat two decades ago, the lease term was of no interest. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. Callum was able to extend his lease just in the nick of time last September. Callum and the landlord eventually settled on an amount of £5,500 . If the lease had slipped lower than 80 years, the amount would have gone up by a minimum £1,000.
In 2009 we were approached by Dr Sebastian Walker who, having moved into a garden flat in East Finchley in January 1995. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in East Finchley with 100 year plus lease were valued around £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease ended on 11 March 2083. Having 57 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.
An example of a Lease Extension case 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 residue of the current lease was 56.65 years.