It’s an underpublicised certainty that a Neasden residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Neasden property market.Where your lease has approximately 90 years left, you need to 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 below 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 conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
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 experience and the close ties they enjoy with Neasden valuers.
Last year Finn, started to get near to the 80-year mark with the lease on his two bedroom apartment in Neasden. Having purchased his home 19 years ago, the lease term was of little significance. Thankfully, he realised he would imminently be paying way over the odds for Extending the lease. Finn extended the lease just under the wire last July. Finn and the landlord who owned the flat above subsequently agreed on an amount of £5,500 . If the lease had slipped lower than 80 years, the sum would have become more exhorbitant by a minimum £1,100.
In 2012 we were contacted by Mr Isaac Lefèvre who, having moved into a first floor flat in Neasden in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Neasden with an extended lease were in the region of £280,000. The average amount of ground rent was £55 collected yearly. The lease elapsed in 2105. Taking into account 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Neasden residence 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 unexpired lease term was 65.58 years.