Hendon leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Flat owners in Hendon will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term 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 worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 lawyer we work with provide it.
Last Winter Alexander, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Hendon. In buying his home 18 years ago, the lease term was of minimal significance. by good luck, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Alexander was able to extend his lease just under the wire last July. Alexander and the landlord eventually agreed on the final figure of £5,000 . If the lease had fallen to less than eighty years, the premium would have increased by at least £1,000.
Ms O Bailey moved into a newly refurbished apartment in Hendon in March 2007. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Hendon with a long lease were valued around £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish on 27 February 2094. Having 69 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired residue of the current lease was 71 years.