Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Willesden. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying long lease owners in Willesden have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due consideration before delaying your Willesden lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Willesden with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancing solicitors that we work with procure Willesden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Connor, started to get close to the eighty-year threshold with the lease on his first floor flat in Willesden. In buying his flat twenty years ago, the unexpired term was of little interest. Thankfully, he noticed he would soon be paying way over the odds for Extending the lease. Connor arranged for a lease extension at the eleventh hour in July. Connor and the freeholder via the management company subsequently settled on a premium of £5,500 . If the lease had slid lower than eighty years, the amount would have escalated by at least £975.
In 2012 we were approached by Mr Adam Gómez who, having owned a studio apartment in Willesden in February 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Willesden with an extended lease were worth £243,000. The mid-range ground rent payable was £65 invoiced annually. The lease lapsed in 2089. Considering the 63 years remaining we estimated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus costs.
An example of a lease Extension matter before the tribunal for a Willesden property is First Floor Flat 47 Huddlestone Road in December 2010. the Tribunal a valuation of £13,000 for a lease extension having been asked to consider the premium following a vesting order being granted by Willesden County Court On 14th September 2009 This case was in relation to 1 flat. The unexpired lease term was 71.87 years.