With a long leasehold property in Willesden, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years remaining. Leasehold owners in Willesden with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. Once a lease has under eighty years left, under the current statute the freeholder can calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Willesden with over one hundred years left on the lease are often 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 upside in buying the freehold unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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 conveyancer we work with provide it.
Trailing unsuccessful discussions with the freeholder of her leasehold flat in Willesden, Jodie started the lease extension process as the 80 year mark was swiftly coming. The lease extension was finalised in September 2006. The landlord’s costs were negotiated to a tad over 500 pounds.
Last year we were e-mailed by Mrs O Gunderson , who moved into a first floor apartment in Willesden in July 2002. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Similar properties in Willesden with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease ended in 2093. Taking into account 67 years unexpired we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus costs.
An example of a lease Extension decision for a Willesden premises 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 number of years remaining on the existing lease(s) was 71.87 years.