New Barnet leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in New Barnet will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in New Barnet with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in New Barnet,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with New Barnet valuers.
In 2014 Evan, came very near to the eighty-year mark with the lease on his ground floor apartment in New Barnet. Having bought his home 18 years ago, the lease term was of minimal concern. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. Evan extended the lease at the eleventh hour last April. Evan and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had gone to less than 80 years, the amount would have become more exhorbitant by a minimum £1,000.
Mr Omar Allen owned a purpose-built flat in New Barnet in November 2012. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in New Barnet with a long lease were valued about £242,600. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated in 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.
An example of a Lease Extension decision for a New Barnet premises 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 was in relation to 1 flat. The unexpired term was 76 years.