It’s an underpublicised certainty that a West Harrow residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the West Harrow property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of leasehold owners in West Harrow will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in West Harrow with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
National Westminster Bank | 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. |
The conveyancers that we work with undertake West Harrow 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 lawyer we work with provide it.
Following protracted discussions with the landlord of her ground floor apartment in West Harrow, Freya commenced the lease extension process as the 80 year threshold was fast coming. The legal work was finalised in November 2009. The landlord’s fees were restricted to less than 700 GBP.
Dr Rosie Bennett owned a newly refurbished flat in West Harrow in May 2009. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in West Harrow with a long lease were in the region of £290,000. The average ground rent payable was £45 billed annually. The lease terminated in 2097. Given that there were 73 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
An example of a Lease Extension case for a West Harrow residence 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.