When it comes to domestic leasehold property in Friern Barnet, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are less than eighty years remaining. Residents in Friern Barnet with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has less than eighty years left, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
The conveyancing solicitors that we work with undertake Friern Barnet 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.
Last year Harry, started to get close to the 80-year threshold with the lease on his garden apartment in Friern Barnet. Having purchased his property two decades ago, the unexpired term was of no relevance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Harry arranged for a lease extension just under the wire last July. Harry and the freeholder via the management company ultimately settled on an amount of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £1,075.
In 2011 we were contacted by Mr and Mrs. I Hill who, having acquired a garden apartment in Friern Barnet in May 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Friern Barnet with a long lease were valued about £260,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed on 4 September 2097. Considering the 72 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Friern Barnet residence is 34 Poplar Grove in June 2013. The Tribunal directed that the premium for the lease extension should be in the sum of £10,250. This case affected 1 flat.