Golders Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Golders Green enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Golders Green you must check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Golders Green with over one hundred years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Golders Green leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of unsuccessful correspondence with the freeholder of her garden apartment in Golders Green, Hannah started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The lease extension was concluded in June 2008. The freeholder’s fees were restricted to less than 450 GBP.
In 2013 we were contacted by Mr T Michel who, having owned a one bedroom apartment in Golders Green in September 1997. The question was if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Golders Green with 100 year plus lease were valued around £210,000. The average ground rent payable was £50 invoiced yearly. The lease concluded on 15 May 2106. Considering the 80 years unexpired we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension decision 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.