The re-sale value of a leasehold property in Harlesden depends on how long the lease has remaining. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year cut off point. Statute entitles Harlesden qualifying lessees to an additional term of ninety years over and above the existing term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Harlesden can be a difficult process. We recommend you get guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Harlesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Noah, came dangerously near to the 80-year threshold with the lease on his first floor flat in Harlesden. Having bought his flat twenty years ago, the unexpired term was of minimal importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Noah was able to extend his lease just ahead of time last July. Noah and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he not met the deadline, the price would have escalated by at least £1,125.
Ms Paige Adams bought a recently refurbished apartment in Harlesden in September 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Harlesden with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed in 2096. Taking into account 72 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Harlesden flat is First Floor Flat 2B Fortune Gate Road in May 2013. the tribunal decided that the price payable for the lease extension was £9,331, together with £900 in respect of outstanding ground rent. This case related to 1 flat. The unexpired term as at the valuation date was 74.31 years.