As the the remaining lease term of a New Barnet residential lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty 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 reason why you should consider extending sooner rather than later. The majority of flat owners in New Barnet will qualify for this right; that being said a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in New Barnet can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience procuring New Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Luke, came dangerously close to the 80-year threshold with the lease on his garden flat in New Barnet. Having purchased his flat twenty years previously, the unexpired term was of no relevance. by good luck, he became aware that he needed to take action soon on a lease extension. Luke was able to extend his lease just in the nick of time in June. Luke and the landlord ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the price would have gone up by a minimum £1,050.
In 2014 we were phoned by Dr J Petit who, having owned a purpose-built apartment in New Barnet in June 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparative homes in New Barnet with a long lease were valued around £200,800. The average amount of ground rent was £65 billed per annum. The lease ended on 12 August 2086. Taking into account 60 years unexpired we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.
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 number of years remaining on the existing lease(s) was 76 years.