Chances are that where you own a flat in Harlesden you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Using our service will provide you increased control over the value of your Harlesden leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Sam, started to get close to the 80-year threshold with the lease on his two bedroom flat in Harlesden. In buying his property two decades ago, the lease term was of little relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Sam extended the lease just under the wire in March. Sam and the landlord eventually settled on a premium of £5,000 . If the lease had dipped below 80 years, the amount would have become more costly by a minimum £900.
In 2011 we were approached by Mr and Mrs. N Roberts who, having was assigned a lease of a garden flat in Harlesden in November 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Harlesden with a long lease were valued about £260,000. The average ground rent payable was £50 invoiced quarterly. The lease end date was in 2098. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Harlesden residence 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 affected 1 flat. The number of years remaining on the existing lease(s) was 74.31 years.