Why you should start your Osterley lease extension

Main reasons to start your Osterley lease extension today:

A Osterley lease depreciates with the years remaining on the lease.

The re-sale value of a leasehold property in Osterley is impacted by how long the lease has left to run. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be addressed well before the 80 year threshold. Leasehold Reform legislation enables Osterley qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease is almost the same value as a freehold

Leasehold premises in Osterley with over one hundred years remaining on the lease are often referred to as ‘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 justify it.

Mortgage lenders may decide not to loan monies with a short lease

The trend since 2008 has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Osterley lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Osterley,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Osterley valuers.

Osterley Lease Extension Case Summaries:

Samuel, Osterley, North London,

Samuel owned a conversion apartment in Osterley on the market with a lease of just over fifty eight years remaining. Samuel on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Samuel to invoke his statutory right. Samuel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

Osterley case:

Dr E Evans completed a purpose-built flat in Osterley in January 2001. We are asked if we could approximate the price would be for a ninety year lease extension. Comparable homes in Osterley with a long lease were worth £255,000. The average amount of ground rent was £50 collected annually. The lease expiry date was on 11 October 2097. Considering the 71 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.