Friern Barnet leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Friern Barnet will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Friern Barnet with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Friern Barnet 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 conveyancing solicitor we work with provide it.
Harrison owned a 2 bedroom flat in Friern Barnet on the market with a lease of a few days over 72 years remaining. Harrison informally approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
In 2011 we were e-mailed by Dr Megan Leroy who, having was assigned a lease of a first floor apartment in Friern Barnet in September 1997. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar properties in Friern Barnet with a long lease were valued around £173,800. The average amount of ground rent was £60 collected quarterly. The lease lapsed in 2081. Taking into account 55 years left we approximated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
An example of a Lease Extension case for a Friern Barnet flat 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.