When it comes to residential leasehold property in West Hendon, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than eighty years left. Residents in West Hendon with a lease approaching 81 years remaining should seriously consider extending it sooner than later. When the lease term has under eighty years remaining, under the relevant Act the landlord can calculate and levy a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in West Hendon with in excess of one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in West Hendon,the lease extension solicitors that we work with will always be happy 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.
In recent months Hunter, came dangerously close to the 80-year mark with the lease on his two bedroom apartment in West Hendon. In buying his home two decades ago, the length of the lease was of little interest. Thankfully, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Hunter arranged for a lease extension at the eleventh hour last August. Hunter and the landlord subsequently settled on an amount of £5,000 . If the lease had slid to less than 80 years, the sum would have increased by a minimum £875.
Last month we were e-mailed by Dr T Davies , who was assigned a lease of a basement apartment in West Hendon in March 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar residencies in West Hendon with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced annually. The lease finished in 2101. Considering the 75 years outstanding we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including 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.