The market value of West Harrow leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is below than 80 years
Leasehold premises in West Harrow with more than one hundred 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 home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | 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. |
Irrespective of whether you are a tenant or a landlord in West Harrow,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with West Harrow valuers.
Last Spring Jayden, came very close to the 80-year mark with the lease on his first floor apartment in West Harrow. Having purchased his property two decades ago, the lease term was of no concern. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Jayden arranged for a lease extension just in the nick of time last May. Jayden and the freeholder ultimately agreed on the final figure of £6,000 . If the lease had fallen to less than 80 years, the sum would have increased by a minimum £1,000.
In 2011 we were contacted by Dr Austin Moreau who, having acquired a garden apartment in West Harrow in June 2008. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in West Harrow with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease terminated in 2098. Given that there were 72 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 75.25 years.