Chances are that if you own a flat in Neasden you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Neasden leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Toby was the the leasehold owner of a studio flat in Neasden being marketed with a lease of a few days over 59 years unexpired. Toby on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 annually. Ordinarily, ground rent would not be due on a lease extension were Toby to exercise his statutory right. Toby obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr G González acquired a first floor flat in Neasden in October 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Neasden with a long lease were valued around £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2104. Having 78 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Neasden property 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 unexpired term as at the valuation date was 65.58 years.