Unfortunately that a Chiswick residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Chiswick property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Most flat owners in Chiswick will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Chiswick with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 freeholder in Chiswick,the lease extension experts that we work with will always be prepared 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 Andrew, started to get near to the eighty-year mark with the lease on his first floor apartment in Chiswick. In buying his home 18 years previously, the lease term was of minimal bearing. by good luck, he noticed he needed to take steps soon on a lease extension. Andrew arranged for a lease extension just under the wire in September. Andrew and the freeholder subsequently agreed on an amount of £5,500 . If the lease had descended lower than 80 years, the sum would have increased by at least £850.
Dr U Morel purchased a ground floor apartment in Chiswick in June 1999. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Chiswick with 100 year plus lease were in the region of £249,200. The mid-range ground rent payable was £60 billed every twelve months. The lease came to a finish on 13 November 2077. Having 51 years left we approximated the premium to the freeholder to extend the lease to be between £42,800 and £49,400 not including fees.
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 affected 1 flat. The unexpired residue of the current lease was 68.34 years.