As the the remaining lease term of a Northwick Park residential lease lessens so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Northwick Park will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Northwick Park with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Northwick Park,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Northwick Park valuers.
Last year Toby, started to get close to the 80-year mark with the lease on his first floor apartment in Northwick Park. Having purchased his flat twenty years previously, the length of the lease was of minimal bearing. Luckily, he noticed he needed to take action soon on a lease extension. Toby arranged for a lease extension just under the wire in September. Toby and the landlord who owned the flat above in the end agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the premium would have increased by a minimum £850.
Mr and Mrs. E Martinez was assigned a lease of a recently refurbished apartment in Northwick Park in November 1999. The question was if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Northwick Park with an extended lease were in the region of £176,200. The average amount of ground rent was £65 collected every twelve months. The lease finished on 15 January 2081. Given that there were 56 years left we calculated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Northwick Park premises is Ground Floor Flat 17 Frognal Avenue in April 2012. the Tribunal agreed that a value of £160,000 for the extended lease was appropriate. This case related to 1 flat. The unexpired lease term was 61.66 years.