The market value of a leasehold property in Northolt depends on how long the lease has remaining. If it is near to or fewer than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year threshold. Current legislation enables Northolt qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Northolt with in excess of 100 years left 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining 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 conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luca, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Northolt. Having purchased his property two decades ago, the length of the lease was of no bearing. As luck would have it, he became aware that he would imminently be paying an inflated amount for a lease extension. Luca arranged for a lease extension just ahead of time last May. Luca and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had dropped below 80 years, the sum would have escalated by a minimum £975.
Last Summer we were approach by Mr Alexander Nelson , who moved into a studio apartment in Northolt in November 1996. The question was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical premises in Northolt with 100 year plus lease were valued around £186,000. The mid-range ground rent payable was £65 collected quarterly. The lease lapsed on 1 August 2084. Given that there were 58 years remaining we approximated the premium to the landlord to extend the lease to be within £24,700 and £28,600 not including legals.
An example of a Lease Extension case for a Northolt premises 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 related to 1 flat. The remaining number of years on the lease was 79 years.