The closer a domestic lease in Harlesden gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Harlesden will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 lawyer we work with provide it.
Following unsuccessful correspondence with the landlord of her studio apartment in Harlesden, Ellie started the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was finalised in June 2015. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. F Mason , who bought a purpose-built apartment in Harlesden in November 2004. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative properties in Harlesden with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed monthly. The lease ran out in 2096. Taking into account 70 years unexpired we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus expenses.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term was 74.31 years.