It’s a harsh certainty that a Golders Green residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Golders Green property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term drops below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Golders Green will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Golders Green with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Last October Nathaniel, started to get close to the eighty-year mark with the lease on his purpose- built flat in Golders Green. Having purchased his home two decades ago, the unexpired term was of minimal bearing. Luckily, he noticed he needed to take action soon on a lease extension. Nathaniel was able to extend his lease just under the wire in March. Nathaniel and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £1,150.
Dr H Kelly bought a one bedroom apartment in Golders Green in April 2005. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Golders Green with a long lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated on 20 January 2105. Having 79 years left we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension decision for a Golders Green residence 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.