North West London leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying North West London residential leaseholders to extend the terms of long leases. If you are a leasehold owner in North West London you should investigate if your lease has between seventy and 90 years left. There are compelling reasons why a North West London leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Regardless of whether you are a tenant or a landlord in North West London,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with North West London valuers.
Subsequent to lengthy correspondence with the freeholder of her ground floor apartment in North West London, Lily commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in March 2012. The landlord’s fees were kept to an absolute minimum.
Last Spring we were phoned by Mr Max Rose , who took over the lease of a newly refurbished apartment in North West London in September 2011. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in North West London with a long lease were in the region of £265,000. The average ground rent payable was £50 billed quarterly. The lease expired on 17 November 2095. Given that there were 74 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.
Last Summer we were phoned by Ms Anna Morel , who was assigned a lease of a basement flat in North West London in April 2010. 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 an extended lease were worth £166,400. The average amount of ground rent was £60 billed per annum. The lease finished in 2075. Having 54 years unexpired we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.