Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Northolt. Clearly, the period of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Northolt have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. Please give due deliberation before putting off your Northolt lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Northolt leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Michael, came very close to the eighty-year threshold with the lease on his leasehold flat in Northolt. In buying his property two decades ago, the lease term was of no importance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Michael arranged for a lease extension just under the wire in May. Michael and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £1,025.
Last Christmas we were contacted by Mr and Mrs. B Moore , who completed a first floor apartment in Northolt in November 2009. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Northolt with a long lease were worth £176,200. The average ground rent payable was £65 invoiced per annum. The lease elapsed in 2082. Having 56 years left we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 not including fees.
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 affected 1 flat. The unexpired lease term was 79 years.