Friern Barnet leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Friern Barnet will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are prescribed timetables and steps to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Friern Barnet leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her ground floor flat in Friern Barnet, Amy started the lease extension process as the 80 year deadline was fast approaching. The lease extension completed in July 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. J Jackson acquired a garden flat in Friern Barnet in November 1995. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative properties in Friern Barnet with 100 year plus lease were worth £191,000. The average ground rent payable was £65 billed monthly. The lease lapsed in 2084. Taking into account 58 years left we calculated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including expenses.
An example of a Lease Extension case for a Friern Barnet premises is 34 Poplar Grove in June 2013. The Tribunal directed that the premium for the lease extension should be in the sum of £10,250. This case was in relation to 1 flat.