Willesden leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Willesden residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Willesden you should investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Willesden can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 a wealth of experience 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.
During the course of the last few months William, started to get near to the 80-year threshold with the lease on his two bedroom apartment in Willesden. Having purchased his flat 19 years ago, the length of the lease was of little bearing. by good luck, he noticed he needed to take action soon on a lease extension. William arranged for a lease extension at the eleventh hour in January. William and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had slipped below eighty years, the figure would have escalated by at least £950.
Last Autumn we were called by Mr and Mrs. G Vincent , who completed a one bedroom apartment in Willesden in January 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Willesden with 100 year plus lease were worth £275,000. The average ground rent payable was £65 collected annually. The lease lapsed on 25 March 2093. Considering the 68 years remaining we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.
An example of a lease Extension decision for a Willesden flat 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 unexpired term as at the valuation date was 71.87 years.