When it comes to long leasehold property in West Harrow, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in West Harrow with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in West Harrow with more than 100 years outstanding on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your West Harrow leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her garden apartment in West Harrow, Morgan initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction was concluded in April 2006. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were e-mailed by Ms D Rose , who took over the lease of a one bedroom flat in West Harrow in January 2007. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in West Harrow with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded on 27 August 2078. Given that there were 52 years left we estimated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
An example of a Lease Extension decision for a West Harrow flat 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 as at the valuation date was 75.25 years.