On the balance of probabilities where you own a flat in Northolt you actually own a long leasehold interest over your property
Leasehold residencies in Northolt with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Bank of Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Northolt leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold proprietor of a studio flat in Northolt on the market with a lease of fraction over 72 years left. Archie on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
Mr Zachary Cooper took over the lease of a one bedroom apartment in Northolt in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Northolt with an extended lease were worth £191,000. The average ground rent payable was £65 collected quarterly. The lease elapsed in 2083. Considering the 58 years left we approximated the premium to the landlord for the lease extension to be within £23,800 and £27,400 exclusive of expenses.
An example of a Lease Extension case for a Northolt residence 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.