As the length of the unexpired term of a Finchley residential lease decreases so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Finchley will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Finchley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Finchley valuers.
In recent months Jayden, started to get close to the 80-year mark with the lease on his studio apartment in Finchley. Having purchased his home 18 years ago, the unexpired term was of minimal bearing. Thankfully, he recognised he would soon be paying way over the odds for a lease extension. Jayden was able to extend his lease just under the wire in March. Jayden and the landlord eventually agreed on the final figure of £5,000 . If the lease had slid lower than 80 years, the premium would have become more exhorbitant by a minimum £975.
In 2013 we were approached by Dr W Gray who, having completed a purpose-built apartment in Finchley in March 1997. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Finchley with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected per annum. The lease concluded on 15 February 2096. Considering the 71 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 remaining number of years on the lease was 56.65 years.