Chances are that if you own a flat in North Finchley you actually own a long leasehold interest over your property
Leasehold residencies in North Finchley with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your North Finchley leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 John, started to get near to the 80-year mark with the lease on his first floor apartment in North Finchley. In buying his home two decades ago, the unexpired term was of minimal importance. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. John extended the lease at the eleventh hour in January. John and the freeholder eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £1,075.
In 2011 we were called by Dr L Smith who, having acquired a one bedroom apartment in North Finchley in November 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in North Finchley with 100 year plus lease were valued about £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded in 2077. Having 52 years outstanding we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a North Finchley premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The remaining number of years on the lease was 76 years.