The only way is down when it comes to Neasden lease terms. Neasden properties that have a remaining term shorter than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will rise.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Neasden leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Cameron, started to get close to the 80-year mark with the lease on his leasehold flat in Neasden. In buying his property twenty years ago, the lease term was of little bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Cameron was able to extend his lease just under the wire in July. Cameron and the freeholder in the end agreed on sum of £5,000 . If he had missed the deadline, the premium would have increased by at least £1,150.
In 2012 we were called by Mrs M Harris who, having owned a purpose-built apartment in Neasden in June 1998. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Identical premises in Neasden with 100 year plus lease were valued about £245,000. The mid-range amount of ground rent was £45 collected yearly. The lease lapsed on 9 March 2094. Having 68 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
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 was in relation to 2 flats. The remaining number of years on the lease was 65.58 years.