New Barnet residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in New Barnet with more than 100 years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service gives you enhanced control over the value of your New Barnet leasehold, as your property will be more valuable and marketable in terms 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.
Half a year ago Kyle, started to get close to the 80-year threshold with the lease on his purpose- built apartment in New Barnet. Having bought his property two decades ago, the lease term was of no concern. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Kyle was able to extend his lease at the eleventh hour last April. Kyle and the freeholder via the managing agents ultimately agreed on the final figure of £6,000 . If he not met the deadline, the figure would have gone up by at least £1,000.
Last year we were approach by Dr Edward Girard , who was assigned a lease of a basement flat in New Barnet in September 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in New Barnet with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected annually. The lease ended on 10 February 2090. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus fees.
An example of a Lease Extension matter before the tribunal for a New Barnet 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 related to 1 flat. The unexpired term as at the valuation date was 76 years.