The re-sale value of a leasehold property in North West London depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the eighty year threshold. Leasehold Reform legislation entitles North West London qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 North West London leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Arthur was the the leasehold owner of a conversion flat in North West London on the market with a lease of a little over 61 years remaining. Arthur on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. I Clark took over the lease of a one bedroom apartment in North West London in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in North West London with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 collected yearly. The lease lapsed on 20 January 2087. Given that there were 61 years unexpired we estimated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus professional charges.
Mr and Mrs. V Jones acquired a studio apartment in North West London in May 2000. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar homes in North West London with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected annually. The lease termination date was in 2098. Given that there were 72 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.