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 125 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Finchley will meet the qualifying criteria; that being said a conveyancer should be able to confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Finchley with over 100 years left on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 freeholder in Finchley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Finchley valuers.
Jackson was the the leasehold proprietor of a conversion flat in Finchley being marketed with a lease of a few days over 59 years left. Jackson informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and secured an acceptable deal without going to tribunal and sell the flat.
In 2014 we were phoned by Dr R Fournier who, having completed a newly refurbished flat in Finchley in January 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar premises in Finchley with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease end date was on 9 October 2104. Having 79 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
An example of a Lease Extension matter before the tribunal 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 term as at the valuation date was 56.65 years.