Golders Green residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Golders Green with more than one hundred years left 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 buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Engaging our service gives you increased control over the value of your Golders Green leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Luca was the the leasehold owner of a 2 bedroom apartment in Golders Green being sold with a lease of fraction over fifty eight years left. Luca on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luca to invoke his statutory right. Luca procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last month we were e-mailed by Mr and Mrs. W Morris , who purchased a first floor apartment in Golders Green in August 1998. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Golders Green with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed per annum. The lease finished on 1 May 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Lease Extension case for a Golders Green flat is Flat A 372 Cricklewood Lane in January 2013. The Tribunal decided that the premium for the extended lease should be £5,750.00 and that the terms of the new lease should be those set out in annex to the decsion This case was in relation to 1 flat.