The re-sale value of a leasehold property in Northwick Park depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be finalised ahead of the 80 year cut off point. Leasehold Reform legislation enables Northwick Park qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Northwick Park with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with procure Northwick Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jude was the the leasehold proprietor of a 2 bedroom apartment in Northwick Park being marketed with a lease of a little over 72 years remaining. Jude on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 annually. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were approach by Dr D Ramírez , who bought a studio apartment in Northwick Park in March 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical premises in Northwick Park with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 collected per annum. The lease concluded on 14 September 2093. Given that there were 68 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
An example of a Lease Extension case for a Northwick Park residence 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 residue of the current lease was 61.66 years.