It’s a harsh certainty that a Osterley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Osterley property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Osterley will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Osterley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Spring Jude, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Osterley. Having bought his flat two decades ago, the length of the lease was of no relevance. Thankfully, he realised he needed to take action soon on a lease extension. Jude extended the lease just under the wire last August. Jude and the freeholder via the managing agents in the end agreed on sum of £5,000 . If the lease had fallen to less than eighty years, the figure would have become more costly by at least £950.
Last Autumn we were called by Dr Oscar Bonnet , who bought a one bedroom apartment in Osterley in January 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Osterley with 100 year plus lease were in the region of £265,000. The average ground rent payable was £55 collected monthly. The lease ended in 2099. Taking into account 74 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Osterley premises is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired residue of the current lease was 60.45 years.