For those whose West Hendon home is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in West Hendon with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 freeholder in West Hendon,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 in-depth market knowledge and the close ties they enjoy with West Hendon valuers.
Milo owned a 2 bedroom apartment in West Hendon being sold with a lease of just over 61 years unexpired. Milo informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Milo to exercise his statutory right. Milo procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2010 we were approached by Mr Tommy Rose who, having owned a first floor flat in West Hendon in February 2010. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical properties in West Hendon with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 billed annually. The lease end date was on 15 February 2076. Having 50 years unexpired we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of expenses.
An example of a Lease Extension decision for a West Hendon property 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 affected 1 flat. The unexpired term as at the valuation date was 71 years.