The nearer a residential lease in Willesden gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Most flat owners in Willesden will qualify for this right; however a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Willesden with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges merit 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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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. |
Retaining our service will provide you enhanced control over the value of your Willesden leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Charlie, came dangerously close to the 80-year threshold with the lease on his studio apartment in Willesden. Having bought his flat two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take action soon on a lease extension. Charlie was able to extend his lease just in the nick of time last June. Charlie and the landlord ultimately settled on sum of £5,000 . If the lease had gone to less than eighty years, the figure would have become more costly by at least £950.
In 2013 we were e-mailed by Dr N Khan who, having took over the lease of a basement apartment in Willesden in November 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Willesden with a long lease were valued about £243,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out in 2088. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.
An example of a lease Extension case for a Willesden property 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 was in relation to 1 flat. The unexpired residue of the current lease was 71.87 years.