As the length of the unexpired term of a West Harrow residential lease diminished so does its value and therefore the value of your property. If the lease has, over 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired 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 primary logic behind why you should consider extending sooner than later. Most flat owners in West Harrow will qualify for this right; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in West Harrow with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | 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. |
Engaging our service gives you better 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 want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the landlord of her two bedroom apartment in West Harrow, Amber started the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was finalised in October 2010. The freeholder’s charges were restricted to a tad over 550 GBP.
Last Autumn we were approach by Ms Molly François , who bought a ground floor apartment in West Harrow in May 2002. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparable premises in West Harrow with 100 year plus lease were worth £181,600. The average ground rent payable was £55 invoiced yearly. The lease ran out on 4 October 2076. Given that there were 52 years as a residual term we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.
An example of a Lease Extension decision for a West Harrow residence 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 affected 1 flat. The unexpired term as at the valuation date was 75.25 years.