Unfortunately that a Neasden residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Neasden property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. The majority of flat owners in Neasden will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Neasden with in excess of 100 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Neasden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Neasden valuers.
Half a year ago Zachary, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Neasden. Having purchased his flat two decades ago, the unexpired term was of no interest. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Zachary extended the lease at the eleventh hour last April. Zachary and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If he had missed the deadline, the sum would have become more costly by at least £975.
Mr G Jones owned a studio apartment in Neasden in July 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Similar homes in Neasden with a long lease were worth £250,000. The average ground rent payable was £50 billed monthly. The lease finished on 23 August 2095. Taking into account 70 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Neasden premises is 12 & 12A Deacon Road in May 2010. the Tribunal concluded that the price to be paid for the freehold should be £38,287 This case related to 2 flats. The unexpired term was 65.58 years.