With a residential leasehold premises in West Harrow, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in West Harrow with a lease approaching 81 years remaining should seriously consider extending it without delay. When the lease term has less than eighty years left, under the current Act the landlord can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in West Harrow with over 100 years remaining on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you better control over the value of your West Harrow leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Riley, came dangerously close to the eighty-year mark with the lease on his purpose- built flat in West Harrow. In buying his home 19 years ago, the length of the lease was of no interest. Luckily, he realised he would soon be paying an inflated amount for a lease extension. Riley was able to extend his lease just ahead of time in July. Riley and the freeholder ultimately agreed on sum of £5,500 . If the lease had gone lower than 80 years, the price would have gone up by a minimum £1,100.
Last month we were approach by Mr I Murphy , who moved into a first floor flat in West Harrow in April 2004. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable properties in West Harrow with a long lease were valued about £216,000. The average amount of ground rent was £60 billed per annum. The lease finished in 2083. Given that there were 58 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus legals.
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 affected 1 flat. The remaining number of years on the lease was 75.25 years.