The only way is down when it comes to West Harrow lease terms. West Harrow leaseholds that have a residual term fewer than 80 years will reduce in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold residencies in West Harrow with over one hundred years left on the lease are sometimes referred to as ‘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 maintenance charges merit 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you increased control over the value of your West Harrow leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Felix, came seriously near to the 80-year threshold with the lease on his leasehold apartment in West Harrow. In buying his property 19 years previously, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just in the nick of time in April. Felix and the freeholder ultimately agreed on an amount of £6,000 . If the lease had fallen to less than eighty years, the figure would have become more costly by at least £1,150.
In 2009 we were contacted by Mrs M Gray who, having acquired a recently refurbished apartment in West Harrow in August 2010. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Identical properties in West Harrow with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease lapsed on 12 May 2103. Taking into account 78 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
An example of a Lease Extension case for a West Harrow premises is flat 93b Welldon Crescent in May 2009. The Tribunals valuation for a 90-year lease extension of this fat was £13,171 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 75.25 years.