The only way is down when it comes to Harlesden lease terms. Harlesden properties that have a lease term less than than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will increase.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Max owned a high value flat in Harlesden on the market with a lease of fraction over 61 years outstanding. Max informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Dr U Moreau acquired a purpose-built flat in Harlesden in August 2011. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable flats in Harlesden with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 5 June 2103. Given that there were 77 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 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 unexpired lease term was 74.31 years.