Chances are that where you own a flat in Harlesden you actually own a long leasehold interest over your property
Leasehold premises in Harlesden with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
|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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|National Westminster Bank|| Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|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.
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
The lawyers that we work with procure Harlesden 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 lawyer we work with provide it.
Archie owned a high value flat in Harlesden being marketed with a lease of fraction over 59 years remaining. Archie informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Archie to invoke his statutory right. Archie procured expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Last month we were approach by Dr Georgina Michel , who acquired a one bedroom apartment in Harlesden in November 2007. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Harlesden with a long lease were in the region of £168,800. The average amount of ground rent was £60 billed monthly. The lease elapsed in 2076. Considering the 55 years outstanding we calculated the premium to the landlord for the lease extension 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 related to 1 flat. The remaining number of years on the lease was 74.31 years.