On the balance of probabilities if you own a flat in North West London you actually own a long leasehold interest over your property
Leasehold premises in North West London with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations 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 are not acceptable. 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; |
| Godiva Mortgages | 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 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.
Subsequent to lengthy correspondence with the freeholder of her basement flat in North West London, Hollie initiated the lease extension process as the eighty year mark was swiftly coming. The transaction was finalised in March 2006. The freeholder’s charges were kept to an absolute minimum.
Mr K Fournier took over the lease of a recently refurbished apartment in North West London in May 1995. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in North West London with a long lease were valued around £256,600. The mid-range amount of ground rent was £60 collected annually. The lease expired on 5 October 2078. Having 52 years unexpired we calculated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of fees.
In 2013 we were approached by Mr and Mrs. N Norbert who, having purchased a one bedroom flat in North West London in June 2001. The question was if we could estimate the price could be to extend the lease by an additional years. Comparable residencies in North West London with 100 year plus lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish in 2089. Given that there were 63 years remaining we calculated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including professional charges.