With a residential leasehold property in Chiswick, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Chiswick with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Chiswick,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chiswick valuers.
Trailing lengthy discussions with the freeholder of her basement flat in Chiswick, Rachael initiated the lease extension process just as the lease was nearing the critical 80-year threshold. The lease extension completed in February 2009. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. R Hill completed a one bedroom apartment in Chiswick in August 2009. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical properties in Chiswick with an extended lease were valued around £250,000. The average amount of ground rent was £50 billed monthly. The lease expired on 19 May 2094. Taking into account 68 years remaining we calculated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 plus costs.
An example of a Lease Extension decision for a Chiswick property is Flat 1 30 Ennismore Avenue in September 2010. the Tribunal adopted and arrived at a premium for the lease extension of £29, 900 This case affected 1 flat. The unexpired term was 68.34 years.