Willesden leases on domestic properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be payable. Flat owners in Willesden will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold premises in Willesden with in excess of 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Willesden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Willesden valuers.
Last October Jude, started to get close to the 80-year mark with the lease on his leasehold apartment in Willesden. Having bought his flat 18 years ago, the lease term was of no interest. Thankfully, he realised he needed to take steps soon on Extending the lease. Jude was able to extend his lease at the eleventh hour in April. Jude and the freeholder via the management company subsequently agreed on a premium of £5,500 . If the lease had descended lower than 80 years, the figure would have become more costly by at least £875.
Last Winter we were approach by Mrs Sophie King , who moved into a basement flat in Willesden in June 2002. 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 ninety years. Identical properties in Willesden with 100 year plus lease were valued around £225,800. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish on 1 April 2085. Having 60 years unexpired we calculated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus legals.
An example of a lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 71.87 years.