Harlesden residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold premises in Harlesden with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure 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 conveyancer we work with provide it.
In the wake of 6 months of lengthy correspondence with the landlord of her garden apartment in Harlesden, Charlotte initiated the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in November 2013. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Ms O Evans who, having acquired a first floor apartment in Harlesden in May 2007. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Similar flats in Harlesden with 100 year plus lease were valued about £265,000. The mid-range ground rent payable was £50 collected yearly. The lease ended in 2099. Considering the 73 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
An example of a Lease Extension decision 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 lease term was 74.31 years.