The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in North Finchley can extend the lease for an additional 90 years under statute. Please think carefully before delaying your North Finchley lease extension. Putting off the costs today simply escalates the price you will eventually have to pay for a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service will provide you increased control over the value of your North Finchley leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her two bedroom apartment in North Finchley, Shannon started the lease extension process as the eighty year threshold was swiftly coming. The transaction was concluded in May 2015. The landlord’s costs were kept to an absolute minimum.
Last month we were phoned by Mr and Mrs. D Bertrand , who took over the lease of a ground floor apartment in North Finchley in April 2008. The question was if we could approximate the price could be for a 90 year lease extension. Comparable premises in North Finchley with an extended lease were valued about £285,000. The average ground rent payable was £45 invoiced quarterly. The lease came to a finish in 2098. Given that there were 72 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension decision for a North Finchley flat 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 unexpired term was 76 years.