North West London leases on residential deteriorating in value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in North West London will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in North West London,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North West London valuers.
During the course of the last few months Leon, started to get close to the eighty-year mark with the lease on his basement apartment in North West London. Having purchased his property 19 years previously, the lease term was of no significance. Luckily, it dawned on him that he would soon be paying an escalated premium for a lease extension. Leon arranged for a lease extension just in the nick of time last May. Leon and the freeholder via the managing agents ultimately agreed on sum of £5,500 . If he failed to meet the deadline, the sum would have become more costly by a minimum £925.
Last Autumn we were called by Mr and Mrs. I Leroy , who moved into a first floor flat in North West London in August 2009. The dilemma was if we could estimate the price would likely be to extend the lease by ninety years. Identical premises in North West London with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded on 17 January 2103. Having 78 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last month we were contacted by Mr L Allen , who was assigned a lease of a one bedroom flat in North West London in June 2010. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in North West London with an extended lease were valued around £191,000. The average amount of ground rent was £65 billed quarterly. The lease expired on 21 November 2083. Having 58 years remaining we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of fees.