The nearer a domestic lease in Hendon gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Hendon will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Hendon leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Finley, started to get near to the eighty-year mark with the lease on his first floor apartment in Hendon. Having bought his flat 19 years previously, the unexpired term was of minimal significance. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Finley extended the lease just in the nick of time last September. Finley and the freeholder via the management company eventually settled on the final figure of £6,000 . If the lease had dropped to less than eighty years, the price would have become more exhorbitant by at least £1,125.
In 2014 we were approached by Mrs Emily Bertrand who, having acquired a ground floor flat in Hendon in May 2012. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable premises in Hendon with a long lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease finished in 2101. Given that there were 75 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Hendon property 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 affected 1 flat. The unexpired term was 71 years.