With a domestic leasehold property in New Barnet, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in New Barnet with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has under eighty years left, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold premises in New Barnet with in excess of 100 years unexpired 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in New Barnet,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Barnet valuers.
Subsequent to protracted correspondence with the freeholder of her first floor flat in New Barnet, Imogen commenced the lease extension process as the 80 year deadline was swiftly coming. The lease extension was concluded in January 2009. The freeholder’s fees were restricted to about 500 GBP.
Dr A Clark took over the lease of a studio flat in New Barnet in September 2000. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in New Barnet with an extended lease were worth £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease termination date was in 2082. Taking into account 56 years remaining we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
An example of a Lease Extension case for a New Barnet flat 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.