The market value of a leasehold property in Golders Green is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year threshold. Leasehold Reform legislation enables Golders Green qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Golders Green with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Golders Green,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Golders Green valuers.
Caleb was the the leasehold owner of a 2 bedroom flat in Golders Green on the market with a lease of a few days over 72 years remaining. Caleb on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Caleb to invoke his statutory right. Caleb procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
Last Christmas we were contacted by Dr Francesca Hall , who purchased a studio apartment in Golders Green in May 2011. We are asked if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Comparative properties in Golders Green with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2094. Taking into account 68 years remaining we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal 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.