The re-sale value of a leasehold property in West Harrow is impacted by how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year threshold. Leasehold Reform legislation enables West Harrow qualifying lessees to obtain a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in West Harrow with more than one hundred years outstanding 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
Retaining our service will provide you increased control over the value of your West Harrow leasehold, as your property will be more valuable and saleable in respect of lease length should you decide 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.
In 2014 Aiden, started to get close to the 80-year mark with the lease on his leasehold apartment in West Harrow. In buying his flat two decades ago, the length of the lease was of little concern. Fortunately, he noticed he would soon be paying an inflated amount for Extending the lease. Aiden extended the lease just under the wire in January. Aiden and the freeholder in the end settled on an amount of £6,000 . If he had missed the deadline, the premium would have escalated by a minimum £900.
Last Spring we were phoned by Mr and Mrs. F Michel , who acquired a purpose-built apartment in West Harrow in June 1998. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative homes in West Harrow with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 collected annually. The lease elapsed in 2090. Considering the 64 years remaining we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
An example of a Lease Extension matter before the tribunal 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 lease term was 75.25 years.