Willesden residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Willesden with more than 100 years unexpired 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Willesden can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 Willesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago William, came perilously close to the eighty-year threshold with the lease on his purpose- built apartment in Willesden. In buying his property 18 years previously, the unexpired term was of minimal interest. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. William was able to extend his lease just ahead of time last January. William and the landlord eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £1,050.
Mr and Mrs. V David acquired a one bedroom flat in Willesden in October 2004. The question was if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Willesden with 100 year plus lease were valued around £235,600. The average ground rent payable was £60 collected annually. The lease elapsed in 2087. Considering the 62 years outstanding we calculated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 plus fees.
An example of a lease Extension case for a Willesden flat 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 related to 1 flat. The remaining number of years on the lease was 71.87 years.