Brent Cross leases on residential deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to take place before the term of the current lease drops below 80 years - otherwise a higher premium will be due. Leasehold owners in Brent Cross will usually be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Brent Cross,the lease extension lawyers 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 Brent Cross valuers.
Subsequent to lengthy correspondence with the landlord of her purpose-built apartment in Brent Cross, Sophia initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction completed in March 2014. The freeholder’s fees were kept to an absolute minimum.
Mrs E Leroy completed a studio apartment in Brent Cross in November 2008. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical flats in Brent Cross with 100 year plus lease were valued around £285,000. The average amount of ground rent was £45 collected annually. The lease finished on 1 October 2098. Given that there were 72 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
An example of a Lease Extension decision for a Brent Cross premises 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 affected 1 flat. The unexpired term was 71 years.