Chiswick leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Chiswick will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Chiswick with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Chiswick valuers.
Last year Jackson, came precariously close to the 80-year threshold with the lease on his ground floor apartment in Chiswick. In buying his flat 18 years previously, the length of the lease was of minimal importance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Jackson extended the lease at the eleventh hour last August. Jackson and the landlord in the end agreed on an amount of £5,500 . If the lease had dipped below 80 years, the premium would have gone up by a minimum £1,000.
Mr and Mrs. K Reed was assigned a lease of a garden flat in Chiswick in September 2003. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar properties in Chiswick with 100 year plus lease were valued around £218,000. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2087. Considering the 63 years outstanding we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including expenses.
An example of a Lease Extension decision for a Chiswick residence 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 as at the valuation date was 68.34 years.