Hendon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Hendon residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Hendon you must see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Hendon with more than 100 years remaining on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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.
Sam was the the leasehold proprietor of a 2 bedroom apartment in Hendon being sold with a lease of just over fifty eight years remaining. Sam on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Sam to exercise his statutory right. Sam obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr L Ali completed a studio flat in Hendon in April 1997. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Comparative flats in Hendon with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 6 April 2100. Given that there were 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
An example of a Lease Extension case for a Hendon residence 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 term as at the valuation date was 71 years.