There is no doubt about it a leasehold flat or house in Hendon is a wasting asset as a result of the shortening lease. If the lease has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Hendon will qualify for this right; however a conveyancing solicitor should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Hendon with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancers that we work with handle Hendon 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 conveyancing solicitor we work with provide it.
Milo was the the leasehold owner of a conversion apartment in Hendon on the market with a lease of a few days over sixty years remaining. Milo on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Milo to exercise his statutory right. Milo obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the property.
Ms S Garcia acquired a one bedroom apartment in Hendon in August 2005. The dilemma was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparative residencies in Hendon with an extended lease were worth £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed on 5 August 2083. Having 58 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Hendon premises is First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100). This case was in relation to 1 flat. The unexpired lease term was 71 years.