Main reasons to start your West Hendon lease extension
<div class="lm-topic lm-topic-lender">
<p>
<h3>
Why you should commence your West Hendon lease extension today: </h3>
<h4>
Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/west-hendon">West Hendon</a> property value </h4>
<p> Unfortunately that a West Hendon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the West Hendon property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in West Hendon will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer from beginning to end of the process.
<h4>An extended lease has roughly the same value as a freehold</h4>
<p>
Leasehold premises in West Hendon with more than 100 years left 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Banks and Building Societies will not grant a mortgage with a short lease</h4> Banks and building societies are making their criteria more stringent and a meaningful number now expect flats to have at least 60 if not 70 years remaining at the expiry of the mortgage. Considering many flats in West Hendon were built in the 1950s, 1960s and 1970s this means many now need to be extended if they wish to get a mortgage.
<p>
<div class="row">
<div class="col-sm-8">
<table class="table table-striped table-condensed">
<thead>
<tr><th>Lender</th>
<th> Requirement
</thead>
<tbody>
<tr>
<td>Accord Mortgages</td>
<td> 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.
</tr>
<tr>
<td>Coventry Building Society</td>
<td> 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.
</tr>
<tr>
<td>National Westminster Bank</td>
<td> Mortgage term plus 30 years.<br /><br />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.
</tr>
<tr>
<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
</tr>
<tr>
<td>Yorkshire Building Society</td>
<td> 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.
</tr>
</tbody>
</table>
</div>
</div>
<h4> Get in touch with one of our West Hendon lease extension solicitors or enfranchisement solicitors
</h4>
<p>
Lease extensions in West Hendon can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
<p>We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring West Hendon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
<h4>
West Hendon Lease Extension Case Studies:
</h4>
<h5> Theo, West Hendon, North London,</h5>
<p>
Theo owned a conversion apartment in West Hendon on the market with a lease of a little over 61 years outstanding. Theo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
<h5>West Hendon case:</h5>
<p>
In 2010 we were phoned by Dr Theo Young who, having completed a basement flat in West Hendon in May 2012. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in West Hendon with an extended lease were valued about £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2082. Taking into account 56 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of fees.
<div> <h5>Decision in Barnet</h5>
<p>
An example of a Lease Extension matter before the tribunal for a West Hendon residence is
First Floor Flat 61 Wilberforce Road in March 2014. The premium payable was £10,130 and the case was remitted back to the Willesden County Court to effect the Vesting Order (Claim No 3W103100).
This case related to 1 flat. The unexpired lease term was 71 years.
</p>
</div>
</div>