Unfortunately that a Harlesden residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Harlesden property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Harlesden will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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 |
| Yorkshire 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. |
Lease extensions in Harlesden can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 year Felix, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Harlesden. In buying his home 18 years ago, the unexpired term was of no bearing. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Felix arranged for a lease extension just under the wire last March. Felix and the landlord who owned the flat above subsequently settled on sum of £5,000 . If the lease had slipped lower than 80 years, the premium would have become more costly by a minimum £1,050.
In 2009 we were e-mailed by Dr I Lee who, having was assigned a lease of a garden apartment in Harlesden in April 1998. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Harlesden with a long lease were in the region of £242,600. The average amount of ground rent was £45 billed yearly. The lease ended in 2092. Taking into account 67 years outstanding we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including legals.
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 was 74.31 years.