With a long leasehold property in North Finchley, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years remaining. Residents in North Finchley with a lease approaching 81 years left should seriously consider extending it without delay. Once the lease term has fewer than 80 years left, under the current statute the landlord is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in North Finchley with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in North Finchley can be a difficult process. We recommend you obtain guidance from a conveyancer 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 in-depth market knowledge dealing with 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.
Benjamin was the the leasehold proprietor of a high value flat in North Finchley being marketed with a lease of just over fifty eight years outstanding. Benjamin on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert advice and secured satisfactory resolution informally and readily saleable.
In 2010 we were approached by Mrs M Mason who, having bought a one bedroom flat in North Finchley in February 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable residencies in North Finchley with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 invoiced quarterly. The lease lapsed in 2099. Considering the 73 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired residue of the current lease was 76 years.