The closer a domestic lease in New Barnet nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than one hundred years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Many flat owners in New Barnet will meet the qualifying criteria; that being said a conveyancer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 New Barnet,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Barnet valuers.
Dexter owned a studio apartment in New Barnet on the market with a lease of a little over 72 years outstanding. Dexter on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. N Turner was assigned a lease of a studio flat in New Barnet in September 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in New Barnet with an extended lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 9 August 2094. Having 68 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
An example of a Lease Extension case for a New Barnet flat is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The unexpired residue of the current lease was 76 years.