Unfortunately that a Northolt residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Northolt property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Northolt will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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:
|
Engaging our service gives you increased control over the value of your Northolt leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Michael, came perilously near to the eighty-year threshold with the lease on his one bedroom apartment in Northolt. Having bought his home two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Michael arranged for a lease extension just ahead of time in August. Michael and the freeholder subsequently settled on the final figure of £5,500 . If the lease had dipped lower than 80 years, the price would have gone up by at least £925.
Last Spring we were contacted by Mr and Mrs. C Jackson , who took over the lease of a first floor flat in Northolt in August 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Northolt with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced yearly. The lease concluded on 4 February 2088. Taking into account 62 years outstanding we estimated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including fees.
An example of a Lease Extension case for a Northolt property is GFF 1 Holyrood Avenue in May 2014. The Tenant wished to acquire a new (extended) lease and applied to the Willesden County Court who granted a vesting order on 20* March2013. The Tribunal decied that the premium to be paid was £9,062 This case was in relation to 1 flat. The unexpired term as at the valuation date was 79 years.