Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in North Finchley. Inevitably, the period of lease remaining reduces over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in North Finchley have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due attention before delaying your North Finchley lease extension. Holding off that expense now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in North Finchley can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 dealing with North Finchley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward was the the leasehold proprietor of a conversion apartment in North Finchley being sold with a lease of a little over 61 years outstanding. Edward on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were e-mailed by Mrs Catherine Bell who, having purchased a one bedroom apartment in North Finchley in June 2006. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable properties in North Finchley with a long lease were valued around £250,400. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 22 August 2090. Taking into account 64 years outstanding we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
An example of a Lease Extension case for a North Finchley 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 related to 1 flat. The unexpired lease term was 76 years.