North West London leases on residential deteriorating in value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in North West London will mostly be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in North West London with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| The Mortgage Works |
Using our service will provide you increased control over the value of your North West London leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ollie was the the leasehold owner of a studio apartment in North West London being marketed with a lease of a few days over 72 years outstanding. Ollie on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be payable on a lease extension were Ollie to invoke his statutory right. Ollie obtained expert advice and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2012 we were phoned by Ms Sophie Williams who, having was assigned a lease of a ground floor flat in North West London in February 2012. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparable homes in North West London with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 billed every twelve months. The lease termination date was in 2090. Considering the 64 years outstanding we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including costs.
Mr J Hall took over the lease of a ground floor apartment in North West London in July 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in North West London with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease finished in 2101. Having 75 years unexpired we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.