The value of Harlesden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is below than eighty years
Leasehold properties in Harlesden with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with Harlesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Muhammad, came seriously close to the 80-year mark with the lease on his two bedroom apartment in Harlesden. In buying his home 19 years ago, the lease term was of no importance. As luck would have it, he realised he would imminently be paying an inflated amount for Extending the lease. Muhammad was able to extend his lease just ahead of time in April. Muhammad and the landlord subsequently agreed on a premium of £5,000 . If the lease had slipped below eighty years, the price would have increased by at least £950.
In 2012 we were called by Ms Ellie Morel who, having took over the lease of a one bedroom apartment in Harlesden in September 2010. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar flats in Harlesden with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease concluded on 10 February 2106. Taking into account 80 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired lease term was 74.31 years.