Harlesden leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is less than 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. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Harlesden will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Harlesden with in excess of 100 years unexpired on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you increased control over the value of your Harlesden leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Charlie, came perilously near to the 80-year mark with the lease on his garden apartment in Harlesden. Having purchased his home 18 years ago, the length of the lease was of little interest. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Charlie was able to extend his lease just under the wire in March. Charlie and the landlord eventually agreed on a premium of £6,000 . If the lease had slid to less than eighty years, the amount would have gone up by a minimum £900.
Mr and Mrs. S Khan was assigned a lease of a one bedroom apartment in Harlesden in May 1997. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Harlesden with 100 year plus lease were valued about £173,800. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 7 January 2081. Taking into account 55 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.
An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired term was 74.31 years.