Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Chiswick. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Chiswick have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give careful attention before delaying your Chiswick lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Chiswick leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
David was the the leasehold owner of a high value apartment in Chiswick on the market with a lease of a few days over 61 years remaining. David informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were David to exercise his statutory right. David obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. G Rivera who, having bought a one bedroom apartment in Chiswick in March 2008. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical residencies in Chiswick with a long lease were in the region of £225,400. The average ground rent payable was £45 invoiced quarterly. The lease terminated on 21 May 2090. Considering the 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Chiswick flat 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 related to 1 flat. The unexpired term as at the valuation date was 68.34 years.