The market value of Neasden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold premises in Neasden with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Neasden leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted negotiations with the freeholder of her one bedroom apartment in Neasden, Maisie started the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction was finalised in June 2015. The landlord’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. W Morris who, having owned a recently refurbished flat in Neasden in July 2008. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable residencies in Neasden with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected annually. The lease ran out on 9 October 2079. Given that there were 54 years left we approximated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 2 flats. The remaining number of years on the lease was 65.58 years.