When it comes to domestic leasehold property in North Finchley, you are actually purchasing a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years left. Anyone in North Finchley with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the current legislation the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in North Finchley can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring North Finchley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Blake, came dangerously close to the eighty-year mark with the lease on his garden apartment in North Finchley. Having bought his flat 18 years previously, the lease term was of little bearing. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Blake arranged for a lease extension just ahead of time in January. Blake and the landlord ultimately agreed on a premium of £6,000 . If the lease had dropped below eighty years, the figure would have become more exhorbitant by a minimum £850.
In 2012 we were phoned by Dr W Wood who, having bought a ground floor apartment in North Finchley in November 2001. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in North Finchley with an extended lease were in the region of £206,200. The average ground rent payable was £55 collected per annum. The lease elapsed on 22 February 2081. Considering the 56 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.
An example of a Lease Extension decision 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 related to 1 flat. The unexpired term as at the valuation date was 76 years.