As the length of the unexpired term of a Hendon domestic lease lessens so does its value and therefore the value of your property. If the residual term has, more than 99 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Most flat owners in Hendon will qualify for this right; nevertheless a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 freeholder in Hendon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hendon valuers.
After protracted discussions with the freeholder of her leasehold apartment in Hendon, Courtney started the lease extension process just as the lease was coming close to the crucial 80-year mark. The legal work was concluded in April 2008. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Dr Isabel Ali , who took over the lease of a one bedroom apartment in Hendon in January 2001. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Hendon with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish on 5 June 2079. Having 55 years unexpired we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.
An example of a Lease Extension decision for a Hendon 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 was in relation to 1 flat. The unexpired term as at the valuation date was 71 years.