It’s a harsh certainty that a Neasden residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Neasden property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Neasden will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold premises in Neasden with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire Building Society | 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. |
The lawyers that we work with handle Neasden 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.
During the course of the last few months Toby, started to get near to the eighty-year threshold with the lease on his basement flat in Neasden. In buying his flat 19 years previously, the length of the lease was of no concern. Luckily, he recognised he would imminently be paying an escalated premium for Extending the lease. Toby was able to extend his lease just under the wire last April. Toby and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had gone to less than 80 years, the price would have increased by at least £875.
Last October we were contacted by Mr T Wood , who acquired a one bedroom apartment in Neasden in August 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative residencies in Neasden with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired on 3 October 2098. Considering the 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
An example of a Freehold Enfranchisement case for a Neasden flat 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.