With a domestic leasehold premises in Cricklewood, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years remaining. Anyone in Cricklewood with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under 80 years outstanding, under the relevant statute the freeholder can calculate and demand a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Cricklewood can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Cricklewood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her garden apartment in Cricklewood, Samantha commenced the lease extension process as the 80 year mark was rapidly approaching. The transaction was concluded in April 2013. The landlord’s costs were negotiated to less than 500 pounds.
Mr V Hill owned a purpose-built apartment in Cricklewood in August 2012. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative flats in Cricklewood with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 collected monthly. The lease expiry date was on 3 November 2078. Taking into account 53 years left we approximated the compensation to the freeholder for the lease extension to be between £37,100 and £42,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Cricklewood flat is 73 and 73a St. Pauls Avenue in October 2013. the Tribunal held in accordance with section32 and Schedule 6 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the enfranchisement was fifty three thousand three hundred and sixty one pounds (£53,361.00) This case was in relation to 2 flats. The remaining number of years on the lease was 64.61 and 67.18.