As the the remaining lease term of a Golders Green residential lease lessens so does its value and therefore the value of your property. If the lease has, over 100 years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner rather than later. Many flat owners in Golders Green will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
Lender | Requirement |
---|---|
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Halifax | Minimum 70 years from the date of the mortgage. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Golders Green 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 conveyancer we work with provide it.
Last year Benjamin, started to get close to the eighty-year threshold with the lease on his studio flat in Golders Green. Having purchased his flat 18 years ago, the length of the lease was of minimal relevance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Benjamin arranged for a lease extension just under the wire in May. Benjamin and the landlord eventually settled on an amount of £5,000 . If he not met the deadline, the sum would have escalated by at least £975.
Last November we were contacted by Mr and Mrs. U Mitchell , who owned a ground floor apartment in Golders Green in August 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical properties in Golders Green with a long lease were in the region of £270,000. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish in 2092. Having 68 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision for a Golders Green property 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 affected 1 flat.