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. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in North West London will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold premises in North West London with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in North West London,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with North West London valuers.
Half a year ago Dylan, came very near to the 80-year mark with the lease on his purpose- built apartment in North West London. Having bought his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, he realised he would imminently be paying an escalated premium for Extending the lease. Dylan extended the lease just in the nick of time last April. Dylan and the landlord ultimately settled on the final figure of £5,000 . If the lease had slipped below eighty years, the premium would have gone up by at least £1,075.
Mr and Mrs. E Díaz purchased a purpose-built apartment in North West London in June 2007. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Similar homes in North West London with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 billed annually. The lease expired in 2091. Given that there were 66 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2012 we were e-mailed by Mr and Mrs. M Miller who, having completed a purpose-built apartment in North West London in February 2012. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar residencies in North West London with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease expired on 8 August 2102. Considering the 77 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.