The nearer a residential lease in New Barnet gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in New Barnet will meet the qualifying criteria; however a lawyer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Yorkshire Building Society |
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 in-depth market knowledge and the close ties they enjoy with New Barnet valuers.
Liam owned a studio flat in New Barnet on the market with a lease of just over 59 years left. Liam on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Liam to exercise his statutory right. Liam obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last year we were called by Dr M Smith , who purchased a purpose-built flat in New Barnet in February 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in New Barnet with a long lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired in 2089. Considering the 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a New Barnet property 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 lease term was 76 years.