It’s a harsh certainty that a East Barnet residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the East Barnet property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in East Barnet will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in East Barnet with more than 100 years remaining on the lease are sometimes regarded as a ‘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 freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in East Barnet,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East Barnet valuers.
Trailing lengthy correspondence with the landlord of her two bedroom flat in East Barnet, Daisy commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension was concluded in April 2009. The freeholder’s fees were kept to an absolute minimum.
Last July we were called by Ms I Cook , who took over the lease of a first floor apartment in East Barnet in September 2012. The question was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in East Barnet with an extended lease were worth £183,600. The mid-range amount of ground rent was £65 billed quarterly. The lease ran out on 18 October 2082. Taking into account 57 years unexpired we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus costs.
An example of a Freehold Enfranchisement matter before the tribunal for a East Barnet residence 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 unexpired term was 70.31 years.