New Barnet leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in New Barnet will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in New Barnet with over 100 years outstanding 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 home. 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your New Barnet leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Milo, came very near to the 80-year threshold with the lease on his first floor flat in New Barnet. In buying his property two decades ago, the unexpired term was of little relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Milo extended the lease just in the nick of time last August. Milo and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had gone below eighty years, the amount would have increased by at least £1,125.
Mr K Edwards took over the lease of a one bedroom apartment in New Barnet in March 2007. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Identical premises in New Barnet with 100 year plus lease were worth £183,600. The average ground rent payable was £65 invoiced annually. The lease terminated on 19 June 2082. Considering the 57 years left we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
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 lease term was 76 years.