Chances are that where you own a flat in Hendon you actually own a long leasehold interest over your property
Leasehold properties in Hendon with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Hendon can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Hendon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Joseph, came seriously near to the 80-year threshold with the lease on his first floor apartment in Hendon. In buying his property two decades ago, the lease term was of no importance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Joseph arranged for a lease extension just in the nick of time in September. Joseph and the freeholder via the management company ultimately settled on sum of £5,500 . If the lease had dipped to less than 80 years, the amount would have become more costly by a minimum £1,075.
Last Christmas we were contacted by Dr Connor Simon , who purchased a one bedroom flat in Hendon in September 1996. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Hendon with an extended lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease termination date was in 2102. Having 77 years unexpired we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
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 was in relation to 1 flat. The remaining number of years on the lease was 71 years.