When it comes to domestic leasehold premises in Friern Barnet, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Leasehold owners in Friern Barnet with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. When the lease term has below 80 years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Friern Barnet with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Friern Barnet can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Friern Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of lengthy negotiations with the landlord of her garden flat in Friern Barnet, Kelsey commenced the lease extension process as the 80 year deadline was fast approaching. The transaction was concluded in March 2013. The freeholder’s costs were restricted to less than 500 GBP.
Mr Y Parker owned a basement flat in Friern Barnet in September 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Friern Barnet with 100 year plus lease were valued about £280,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed on 11 February 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.
An example of a Lease Extension decision for a Friern Barnet flat 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 was in relation to 1 flat.