Cricklewood leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Cricklewood tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Cricklewood you really ought to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Cricklewood leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in Cricklewood with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
| 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. |
The lawyers that we work with procure Cricklewood 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.
Blake owned a 2 bedroom apartment in Cricklewood on the market with a lease of a little over fifty eight years outstanding. Blake on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last Spring we were approach by Mr and Mrs. M Lefèvre , who owned a ground floor flat in Cricklewood in March 2003. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar homes in Cricklewood with a long lease were in the region of £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish on 27 September 2080. Considering the 54 years unexpired we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including professional charges.
An example of a Freehold Enfranchisement case for a Cricklewood property 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 related to 2 flats. The remaining number of years on the lease was 64.61 and 67.18.