Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Friern Barnet. Clearly, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the flat or house has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Friern Barnet have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Friern Barnet lease extension. Putting off that expense now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Yorkshire 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. |
Lease extensions in Friern Barnet can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Friern Barnet lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy discussions with the freeholder of her purpose-built flat in Friern Barnet, Mia commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction completed in April 2013. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. Y Cooper who, having bought a ground floor apartment in Friern Barnet in September 1998. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Friern Barnet with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2088. Taking into account 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of costs.
An example of a Lease Extension case for a Friern Barnet property 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 affected 1 flat.