Main reasons to commence your Hendon lease extension
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Main reasons to start your Hendon lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/hendon">Hendon</a> lease depreciates with the years remaining on the lease.
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<p> The re-sale value of a leasehold property in Hendon depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that all matters can be addressed well before the eighty year cut off point. Statute entitles Hendon qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension. <h4>Hendon property with a lease extension has roughly the same value as a freehold</h4>
<p> It is generally considered that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
<h4>Lending institutions will not finance a property on a short lease</h4>
The trend since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as standard.
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>Leeds Building Society</td>
<td> 85 years remaining from the start of the mortgage.
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<td>Lloyds TSB Scotland</td>
<td> Minimum 70 years from the date of the mortgage.
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<h4> Get in touch with one of our Hendon lease extension solicitors or enfranchisement solicitors
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<p> Engaging our service will provide you enhanced control over the value of your Hendon leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell.
The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Hendon Lease Extension Example Cases:
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<h5> Kirsty, Hendon, North London,</h5>
<p> After unsuccessful negotiations with the landlord of her purpose-built flat in Hendon, Kirsty initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The legal work completed in May 2009. The freeholder’s costs were kept to an absolute minimum.
<h5>Hendon case:</h5>
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Last Autumn we were phoned by Dr Zachary Ward , who
owned a purpose-built flat in Hendon in August 1997. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparable homes in Hendon with an extended lease were worth £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 20 September 2092. Considering the 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
<div> <h5>Decision in Barnet</h5>
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An example of a Lease Extension decision for a Hendon flat 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 related to 1 flat. The unexpired lease term was 71 years.
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