The closer a residential lease in New Barnet gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, beyond 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. The majority of flat owners in New Barnet will qualify for this right; nevertheless a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in New Barnet,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Barnet valuers.
18 months ago Aarav, came precariously near to the 80-year threshold with the lease on his basement flat in New Barnet. Having bought his property two decades ago, the length of the lease was of little relevance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Aarav arranged for a lease extension at the eleventh hour in March. Aarav and the landlord eventually agreed on the final figure of £6,000 . If the lease had descended to less than 80 years, the sum would have increased by at least £1,125.
Dr Jason Murphy owned a one bedroom flat in New Barnet in June 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in New Barnet with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ran out in 2105. Having 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.
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.