Unfortunately that a Harlesden residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Harlesden property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term dips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Harlesden will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Harlesden with over one hundred 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 property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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 remaining from the start of the mortgage. |
| 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. |
Lease extensions in Harlesden can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Harlesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Jonathan, started to get near to the eighty-year threshold with the lease on his first floor flat in Harlesden. In buying his home 18 years ago, the unexpired term was of minimal concern. Luckily, he noticed he needed to take steps soon on a lease extension. Jonathan arranged for a lease extension just in the nick of time in August. Jonathan and the freeholder eventually agreed on the final figure of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £1,100.
Last year we were e-mailed by Ms Olivia Nguyen , who took over the lease of a garden flat in Harlesden in May 2007. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Harlesden with 100 year plus lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected every twelve months. The lease expiry date was in 2089. Taking into account 64 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus expenses.
An example of a Lease Extension matter before the tribunal 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 unexpired term as at the valuation date was 74.31 years.