Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in North Finchley. Inevitably, the length of lease remaining shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in North Finchley have the legal entitlement to extend the lease for an additional ninety years under statute. Please give due deliberation before putting off your North Finchley lease extension. Putting off the cost now likely increases the price you will eventually have to pay for a lease extension
Leasehold properties in North Finchley with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in North Finchley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North Finchley valuers.
David owned a 2 bedroom apartment in North Finchley on the market with a lease of a few days over sixty years remaining. David informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were David to invoke his statutory right. David procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Autumn we were called by Mr Henry Roux , who purchased a garden flat in North Finchley in March 1998. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in North Finchley with 100 year plus lease were worth £223,400. The average amount of ground rent was £60 invoiced yearly. The lease came to a finish on 3 November 2084. Taking into account 59 years left we calculated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus fees.
An example of a Lease Extension case for a North Finchley 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 term was 76 years.