Friern Barnet leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Friern Barnet enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Friern Barnet you would be well advised to see if your lease has between seventy and ninety years left. There are compelling reasons why a Friern Barnet flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Friern Barnet with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Friern Barnet can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 procuring 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.
Last year Aiden, started to get near to the 80-year mark with the lease on his leasehold apartment in Friern Barnet. Having bought his property two decades ago, the length of the lease was of minimal concern. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Aiden extended the lease just under the wire last June. Aiden and the landlord ultimately settled on the final figure of £5,000 . If the lease had descended below eighty years, the price would have escalated by at least £950.
In 2012 we were e-mailed by Ms Y Watson who, having took over the lease of a one bedroom flat in Friern Barnet in January 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Friern Barnet with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed in 2099. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension decision for a Friern Barnet premises 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 related to 1 flat.