The re-sale value of a leasehold property in West Hendon depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the 80 year threshold. Current legislation enables West Hendon qualifying lessees to an additional term of ninety years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in West Hendon with over 100 years outstanding 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 upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle West Hendon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jason owned a studio apartment in West Hendon on the market with a lease of a few days over sixty years unexpired. Jason on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Mr and Mrs. I Scott who, having bought a one bedroom apartment in West Hendon in May 2000. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Comparable properties in West Hendon with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 4 April 2082. Considering the 57 years left we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.
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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 71 years.