When it comes to residential leasehold premises in West Harrow, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Leasehold owners in West Harrow with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has below 80 years outstanding, under the relevant Act the landlord can calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold premises in West Harrow with over one hundred years outstanding on the lease are sometimes referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased 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 decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Isaac, came dangerously near to the eighty-year threshold with the lease on his studio apartment in West Harrow. Having bought his home two decades ago, the lease term was of little significance. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Isaac extended the lease just under the wire in April. Isaac and the landlord who owned the flat above subsequently settled on sum of £6,000 . If the lease had fallen below 80 years, the figure would have increased by at least £1,075.
In 2010 we were e-mailed by Mr R Pérez who, having bought a first floor flat in West Harrow in April 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable residencies in West Harrow with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 collected yearly. The lease finished in 2094. Given that there were 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension case 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 unexpired term was 75.25 years.