As the length of the unexpired term of a Willesden domestic lease decreases so does its value and therefore the value of your property. If the residual term has, more than 125 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. The majority of flat owners in Willesden will qualify for this right; that being said a lawyer can advise whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Willesden with more than one hundred years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Willesden,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willesden valuers.
Archie was the the leasehold proprietor of a 2 bedroom apartment in Willesden being marketed with a lease of a little over sixty years remaining. Archie informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Archie to exercise his statutory right. Archie procured expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2011 we were phoned by Mr K Norbert who, having owned a ground floor flat in Willesden in April 2007. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical flats in Willesden with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended on 18 October 2099. Given that there were 73 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
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 affected 1 flat. The unexpired residue of the current lease was 71.87 years.