The market value of a leasehold property in Willesden depends on how long the lease has remaining. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed well before the 80 year mark. Current legislation entitles Willesden qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with handle Willesden lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In 2014 Aarav, came very near to the eighty-year mark with the lease on his purpose- built apartment in Willesden. In buying his flat two decades ago, the unexpired term was of minimal interest. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Aarav extended the lease just in the nick of time in August. Aarav and the freeholder via the management company eventually agreed on sum of £6,000 . If he not met the deadline, the price would have gone up by at least £900.
In 2014 we were approached by Mr Edward López who, having took over the lease of a purpose-built flat in Willesden in March 2003. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar residencies in Willesden with 100 year plus lease were in the region of £218,400. The average amount of ground rent was £60 invoiced yearly. The lease termination date was on 10 July 2084. Having 59 years left we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of legals.
An example of a lease Extension decision for a Willesden residence 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 was 71.87 years.