Finchley residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold properties in Finchley with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Finchley leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her purpose-built flat in Finchley, Victoria initiated the lease extension process as the 80 year mark was fast advancing. The lease extension was finalised in August 2005. The freeholder’s charges were kept to an absolute minimum.
Dr J Brown completed a first floor apartment in Finchley in July 2002. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical flats in Finchley with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 collected monthly. The lease expired on 1 November 2089. Taking into account 64 years left we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus professional charges.
An example of a Lease Extension decision for a Finchley premises 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 lease term was 56.65 years.