It’s a harsh truth that a Brondesbury residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Brondesbury property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Brondesbury will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Brondesbury with more than 100 years outstanding on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 Brondesbury leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her ground floor apartment in Brondesbury, Abbie started the lease extension process just as her lease was coming close to the crucial 80-year deadline. The lease extension was finalised in August 2007. The freeholder’s fees were kept to an absolute minimum.
Dr Luke Young took over the lease of a recently refurbished flat in Brondesbury in October 2007. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical premises in Brondesbury with 100 year plus lease were valued around £275,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease concluded on 13 May 2095. Having 69 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
An example of a Lease Extension decision for a Brondesbury flat is 50a Cavendish Road in April 2014. The Tribunal determines that the premium payable by the Applicant in respect of the extension of the lease for the flat was £82,319. This case affected 1 flat. The unexpired term as at the valuation date was 49.26 years.