Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Brentford. Clearly, the period of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Brentford have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give due consideration before delaying your Brentford lease extension. Putting off the cost now only increases the price you will eventually incur for a lease extension
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Brentford 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.
Kian was the the leasehold proprietor of a high value flat in Brentford on the market with a lease of just over fifty eight years unexpired. Kian on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Kian to exercise his statutory right. Kian obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Autumn we were called by Mr and Mrs. T Lambert , who acquired a garden flat in Brentford in November 1996. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Brentford with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 billed annually. The lease expiry date was in 2094. Taking into account 70 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Brentford premises is 105 & 105A Seaford Road in July 2013. The tribunal determined that the price payable for the freehold interest in the Property was £43,985 . This sum was to be paid into Brentford County Court to enable the matter to proceed This case was in relation to 2 flats.