Chances are that if you own a flat in East Barnet you actually own a long leasehold interest over your property
Leasehold residencies in East Barnet with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you increased control over the value of your East Barnet leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a conversion flat in East Barnet being marketed with a lease of just over 72 years left. Jonathan on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Jonathan to exercise his statutory right. Jonathan obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Winter we were approach by Dr H Flores , who purchased a basement apartment in East Barnet in January 2007. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in East Barnet with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 collected monthly. The lease expiry date was in 2089. Having 64 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of legals.
An example of a Freehold Enfranchisement case for a East Barnet flat is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case related to 2 flats. The remaining number of years on the lease was 70.31 years.