New Barnet leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in New Barnet will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder 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.
Cameron owned a conversion apartment in New Barnet on the market with a lease of a little over 59 years unexpired. Cameron informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to exercise his statutory right. Cameron procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were called by Mrs Chelsea Nelson who, having moved into a basement flat in New Barnet in March 2004. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in New Barnet with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended in 2104. Taking into account 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
An example of a Lease Extension decision 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 term as at the valuation date was 76 years.