There is no doubt about it a leasehold property in East Finchley is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in East Finchley will qualify for this right; that being said a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in East Finchley with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle East Finchley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Dylan was the the leasehold owner of a studio flat in East Finchley being marketed with a lease of a little over 59 years outstanding. Dylan on an informal basis spoke with his freeholder a well known Bristol-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 £200 annually. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mrs D Thomas owned a one bedroom apartment in East Finchley in June 2003. The question was if we could approximate the price could be to prolong the lease by an additional years. Similar flats in East Finchley with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £55 collected yearly. The lease ran out in 2101. Taking into account 76 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a East Finchley property is Ground Floor 110 Station Road in June 2013. The Tribunal found that the premium payable for a lease extension should be £31,665. This case was in relation to 1 flat. The remaining number of years on the lease was 56.65 years.