The only way is down when it comes to Cricklewood lease terms. Cricklewood flats that have a remaining term shorter than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will go up.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cricklewood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cricklewood valuers.
Two years ago Daniel, came dangerously near to the 80-year threshold with the lease on his basement apartment in Cricklewood. In buying his property 19 years previously, the unexpired term was of minimal concern. Luckily, he noticed he needed to take action soon on Extending the lease. Daniel arranged for a lease extension just ahead of time in July. Daniel and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If the lease had slipped to less than eighty years, the sum would have become more costly by a minimum £1,100.
Mr Oscar André bought a one bedroom flat in Cricklewood in June 1999. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable homes in Cricklewood with an extended lease were worth £264,000. The mid-range ground rent payable was £60 billed monthly. The lease terminated in 2079. Given that there were 53 years remaining we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Cricklewood flat 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 term as at the valuation date was 64.61 and 67.18.