The nearer a domestic lease in Northolt gets to zero years unexpired, the more it reduces the value of the property. Where the lease has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Northolt will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barclays plc|| Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).|
Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.
Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:
• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND
• The value of the property subject to the short remaining term is £500,000 or more AND
• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
|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.|
|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.|
|Halifax||Minimum 70 years from the date of the mortgage.|
Lease extensions in Northolt can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Northolt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Oliver, came critically near to the 80-year threshold with the lease on his first floor flat in Northolt. In buying his flat 19 years previously, the unexpired term was of no concern. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Oliver was able to extend his lease just in the nick of time last June. Oliver and the freeholder via the management company subsequently agreed on the final figure of £5,000 . If the lease had dipped to less than 80 years, the price would have escalated by at least £975.
Mr and Mrs. T Campbell took over the lease of a ground floor apartment in Northolt in November 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Northolt with an extended lease were valued about £270,000. The average ground rent payable was £55 invoiced annually. The lease ran out on 25 April 2097. Considering the 75 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Northolt flat 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 residue of the current lease was 79 years.