North West London leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start thinking about 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 below 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 if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold properties in North West London with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure North West London lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Dexter, came very close to the eighty-year threshold with the lease on his studio flat in North West London. Having bought his home two decades ago, the lease term was of no bearing. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Dexter arranged for a lease extension just under the wire in April. Dexter and the freeholder via the management company ultimately agreed on sum of £6,000 . If the lease had dropped lower than 80 years, the premium would have escalated by at least £1,025.
Dr K Leroy purchased a one bedroom flat in North West London in May 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in North West London with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed yearly. The lease ran out on 19 March 2104. Given that there were 79 years unexpired we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
Dr Adam Baker acquired a garden apartment in North West London in September 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar premises in North West London with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2084. Considering the 59 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of fees.