The market value of a leasehold property in West Harrow depends on how long the lease has remaining. If it is near to or less than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised prior to the 80 year threshold. Leasehold Reform legislation entitles West Harrow qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of ninety years. The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in West Harrow with more than 100 years outstanding on the lease are often 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 buying the freehold unless savings on ground rent and service charges merit it.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|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.|
|Lloyds TSB Scotland|| Mortgage term plus 30 years subject to an overall minimum term of 70 years|
|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
Engaging our service will provide you better control over the value of your West Harrow leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jacob, came very near to the 80-year mark with the lease on his garden apartment in West Harrow. In buying his property two decades ago, the length of the lease was of no importance. Luckily, he realised he needed to take action soon on a lease extension. Jacob was able to extend his lease at the eleventh hour last August. Jacob and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he not met the deadline, the price would have escalated by a minimum £950.
In 2009 we were e-mailed by Mr and Mrs. Y Lewis who, having bought a first floor flat in West Harrow in June 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in West Harrow with a long lease were valued around £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed on 9 May 2084. Given that there were 63 years left we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.
An example of a Lease Extension case for a West Harrow property 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 unexpired term was 75.25 years.