West Harrow leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in West Harrow enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in West Harrow you must see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in West Harrow with over 100 years left 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 circumstances there is often little to be gained by buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
| 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. |
Retaining our service will provide you better control over the value of your West Harrow leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a studio flat in West Harrow on the market with a lease of fraction over sixty years outstanding. Dylan informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. 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 £200 yearly. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Spring we were approach by Mr Y Sánchez , who owned a basement flat in West Harrow in February 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Comparative flats in West Harrow with 100 year plus lease were worth £235,600. The mid-range amount of ground rent was £60 invoiced annually. The lease end date was in 2087. Having 62 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 plus expenses.
An example of a Lease Extension decision 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 affected 1 flat. The remaining number of years on the lease was 75.25 years.