Finchley leases on domestic deteriorating in value. if your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Finchley will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Finchley with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
The conveyancing solicitors that we work with undertake Finchley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to protracted discussions with the freeholder of her studio apartment in Finchley, Ellie initiated the lease extension process as the 80 year deadline was fast advancing. The transaction was concluded in April 2012. The landlord’s fees were negotiated to a tad over six hundred GBP.
In 2013 we were contacted by Dr James Flores who, having moved into a newly refurbished flat in Finchley in March 1996. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Finchley with 100 year plus lease were worth £181,600. The mid-range ground rent payable was £55 collected per annum. The lease ran out on 4 July 2078. Considering the 52 years unexpired we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 plus professional charges.
An example of a Lease Extension decision for a Finchley residence 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 was 56.65 years.