West Hendon leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying West Hendon residential leaseholders to extend the terms of long leases. If you are a leasehold owner in West Hendon you really ought to see if your lease has between seventy and 90 years left. There are compelling reasons why a West Hendon leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
Leasehold residencies in West Hendon with more than 100 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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in West Hendon can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge 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.
In the wake of eight months of lengthy discussions with the freeholder of her first floor flat in West Hendon, Francesca started the lease extension process as the eighty year deadline was fast advancing. The legal work completed in June 2007. The freeholder’s fees were negotiated to less than 700 pounds.
In 2010 we were e-mailed by Mr and Mrs. L Howard who, having took over the lease of a purpose-built apartment in West Hendon in March 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in West Hendon with 100 year plus lease were valued about £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2087. Considering the 62 years as a residual term we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 plus professional charges.
An example of a Lease Extension case for a West Hendon premises 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 number of years remaining on the existing lease(s) was 71 years.