The only way is down when it comes to West Hendon lease terms. West Hendon flats that have a residual term fewer than eighty years will drop in value even faster, and the cost to extend your lease will rise.
Leasehold properties 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 home. In such situations there is often little upside in buying 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake 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.
Last October Charlie, started to get close to the eighty-year threshold with the lease on his leasehold apartment in West Hendon. In buying his property 19 years ago, the unexpired term was of minimal interest. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Charlie extended the lease at the eleventh hour last August. Charlie and the landlord ultimately settled on the final figure of £5,500 . If the lease had dropped lower than eighty years, the premium would have escalated by a minimum £850.
Last Winter we were approach by Mr Ryan Morgan , who moved into a one bedroom apartment in West Hendon in April 2009. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in West Hendon with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2093. Considering the 68 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
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 affected 1 flat. The unexpired term was 71 years.