When it comes to residential leasehold premises in Northolt, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years left. Residents in Northolt with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. When a lease has below eighty years remaining, under the current Act the freeholder can calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Northolt with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Northolt,the lease extension lawyers 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 Northolt valuers.
Off the back of protracted discussions with the freeholder of her garden apartment in Northolt, Mia commenced the lease extension process as the 80 year threshold was swiftly approaching. The transaction was finalised in June 2015. The landlord’s costs were kept to an absolute minimum.
Last Spring we were contacted by Ms Shannon François , who bought a one bedroom flat in Northolt in October 2003. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparable residencies in Northolt with an extended lease were worth £208,200. The average amount of ground rent was £65 collected every twelve months. The lease ended in 2086. Considering the 61 years as a residual term we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 plus costs.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired term as at the valuation date was 79 years.