Chances are that where you own a flat in North Finchley you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, 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 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. |
| Chelsea 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in North Finchley,the lease extension experts 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 North Finchley valuers.
Last year Evan, came dangerously near to the 80-year threshold with the lease on his ground floor apartment in North Finchley. Having bought his home two decades ago, the lease term was of minimal concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Evan was able to extend his lease at the eleventh hour in June. Evan and the landlord subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the sum would have escalated by at least £1,050.
Mr Oscar Nelson was assigned a lease of a purpose-built flat in North Finchley in November 2012. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable residencies in North Finchley with 100 year plus lease were valued around £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease expired in 2088. Given that there were 63 years unexpired we calculated the premium to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of legals.
An example of a Lease Extension case for a North Finchley property 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 number of years remaining on the existing lease(s) was 76 years.