West Harrow leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in West Harrow enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in West Harrow you really ought to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a West Harrow leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in West Harrow with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your West Harrow leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her basement flat in West Harrow, Victoria initiated the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction completed in May 2009. The landlord’s fees were kept to an absolute minimum.
Dr A Smith was assigned a lease of a garden flat in West Harrow in July 2006. The question was if we could approximate the price could be for a ninety year extension to my lease. Similar properties in West Harrow with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 billed per annum. The lease expired in 2101. Considering the 75 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension matter before the tribunal for a West Harrow flat is flat 93b Welldon Crescent in May 2009. The Tribunals valuation for a 90-year lease extension of this fat was £13,171 This case was in relation to 1 flat. The unexpired residue of the current lease was 75.25 years.