There is no doubt about it a leasehold flat or house in Cricklewood is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Cricklewood will qualify for this right; nevertheless a lawyer can confirm whether 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 properties in Cricklewood with over 100 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 premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Cricklewood leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her basement flat in Cricklewood, Danielle started the lease extension process as the eighty year mark was rapidly advancing. The transaction was concluded in October 2008. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were phoned by Mr M Rivera who, having purchased a ground floor flat in Cricklewood in November 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical flats in Cricklewood with an extended lease were valued about £280,000. The average ground rent payable was £55 billed yearly. The lease terminated on 24 June 2103. Having 78 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including legals.
An example of a Freehold Enfranchisement decision for a Cricklewood residence is 73 and 73a St. Pauls Avenue in October 2013. the Tribunal held in accordance with section32 and Schedule 6 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the enfranchisement was fifty three thousand three hundred and sixty one pounds (£53,361.00) This case affected 2 flats. The unexpired lease term was 64.61 and 67.18.