North Finchley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in North Finchley enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in North Finchley you would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a North Finchley flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in North Finchley with in excess of one hundred 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 purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| 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 gives you enhanced 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Arthur was the the leasehold proprietor of a conversion flat in North Finchley being marketed with a lease of a few days over 61 years left. Arthur informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. M Stewart who, having acquired a newly refurbished flat in North Finchley in May 1999. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in North Finchley with a long lease were in the region of £275,000. The average amount of ground rent was £65 billed yearly. The lease concluded in 2094. Taking into account 68 years unexpired we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a North Finchley residence 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 was in relation to 1 flat. The remaining number of years on the lease was 76 years.