It’s an underpublicised truth that a Chiswick residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Chiswick property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Chiswick will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
Lease extensions in Chiswick can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Chiswick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron owned a studio flat in Chiswick being sold with a lease of a few days over 72 years outstanding. Cameron informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2014 we were approached by Dr Noah Mercier who, having bought a one bedroom apartment in Chiswick in September 2005. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Chiswick with a long lease were valued about £250,000. The average ground rent payable was £50 billed per annum. The lease expiry date was in 2096. Having 70 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
An example of a Lease Extension matter before the tribunal 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 was in relation to 1 flat. The unexpired residue of the current lease was 68.34 years.