Hendon residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Hendon 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Hendon,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hendon valuers.
Last October Ryan, came dangerously near to the eighty-year mark with the lease on his purpose- built flat in Hendon. In buying his home 18 years ago, the lease term was of no significance. by good luck, he recognised he needed to take action soon on Extending the lease. Ryan was able to extend his lease just in the nick of time in August. Ryan and the landlord ultimately settled on a premium of £6,000 . If he not met the deadline, the amount would have become more costly by a minimum £875.
In 2014 we were contacted by Mr Y Wilson who, having took over the lease of a basement flat in Hendon in September 2009. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Similar premises in Hendon with an extended lease were worth £218,400. The average amount of ground rent was £60 invoiced per annum. The lease ended in 2085. Considering the 59 years remaining we calculated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 exclusive of fees.
An example of a Lease Extension decision 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 number of years remaining on the existing lease(s) was 71 years.