Brent Cross leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Brent Cross will usually qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Brent Cross,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 Brent Cross valuers.
Following lengthy discussions with the freeholder of her basement apartment in Brent Cross, Holly initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was finalised in April 2015. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Dr M Thompson , who completed a studio apartment in Brent Cross in April 2010. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Brent Cross with an extended lease were valued about £208,600. The average amount of ground rent was £60 billed monthly. The lease expired in 2082. Taking into account 57 years unexpired we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including legals.
An example of a Lease Extension decision for a Brent Cross residence is First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100). This case related to 1 flat. The unexpired term as at the valuation date was 71 years.