The value of Willesden leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than eighty years
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Willesden can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Willesden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Tommy, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Willesden. In buying his property two decades ago, the unexpired term was of minimal significance. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Tommy extended the lease at the eleventh hour last September. Tommy and the freeholder ultimately agreed on sum of £5,500 . If he had missed the deadline, the premium would have become more costly by a minimum £1,000.
Last February we were called by Dr T Howard , who completed a purpose-built flat in Willesden in April 2012. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative homes in Willesden with a long lease were worth £200,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed on 26 June 2103. Having 77 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.
An example of a lease Extension decision for a Willesden premises is First Floor Flat 47 Huddlestone Road in December 2010. the Tribunal a valuation of £13,000 for a lease extension having been asked to consider the premium following a vesting order being granted by Willesden County Court On 14th September 2009 This case related to 1 flat. The number of years remaining on the existing lease(s) was 71.87 years.