The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Finchley may extend the lease for a further 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Finchley lease extension. Postponing that expense now simply increases the amount you will ultimately have to pay to extend the lease.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Aarav was the the leasehold proprietor of a conversion flat in Finchley on the market with a lease of fraction over 72 years unexpired. Aarav on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aarav to invoke his statutory right. Aarav obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Last March we were approach by Ms M Anderson , who took over the lease of a basement flat in Finchley in November 1998. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical homes in Finchley with an extended lease were valued about £208,600. The mid-range ground rent payable was £60 billed per annum. The lease expired in 2082. Having 57 years left we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a 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 affected 1 flat. The remaining number of years on the lease was 56.65 years.