When it comes to long leasehold premises in Willesden, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Willesden with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has below eighty years left, under the relevant Act the landlord is entitled to calculate and levy a greater amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Willesden with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Willesden leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Eliot, came precariously close to the eighty-year threshold with the lease on his basement apartment in Willesden. Having purchased his property two decades ago, the length of the lease was of little importance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Eliot was able to extend his lease just under the wire in May. Eliot and the landlord subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,125.
Dr Finn García acquired a garden apartment in Willesden in April 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Willesden with a long lease were in the region of £166,800. The mid-range amount of ground rent was £50 billed per annum. The lease termination date was on 18 May 2076. Taking into account 50 years unexpired we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 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 affected 1 flat. The unexpired term as at the valuation date was 71.87 years.