It’s an underpublicised certainty that a Cricklewood residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Cricklewood property prices.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops below 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cricklewood will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
The conveyancing solicitors 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.
Half a year ago Luca, started to get near to the eighty-year mark with the lease on his first floor apartment in Cricklewood. In buying his home two decades ago, the length of the lease was of no significance. Thankfully, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Luca arranged for a lease extension just under the wire last April. Luca and the landlord who owned the flat above eventually settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £875.
Dr Gemma Roberts took over the lease of a one bedroom apartment in Cricklewood in October 2012. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable flats in Cricklewood with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced monthly. The lease ended in 2084. Having 59 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.
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 residue of the current lease was 64.61 and 67.18.