Osterley leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Osterley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Osterley you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Osterley flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Osterley with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Lease extensions in Osterley can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Osterley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a conversion flat in Osterley being marketed with a lease of fraction over 59 years unexpired. Milo informally contacted his landlord a well known London-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2014 we were called by Mr K Ali who, having moved into a first floor flat in Osterley in January 2008. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Similar flats in Osterley with a long lease were in the region of £227,800. The average ground rent payable was £45 billed annually. The lease concluded on 15 July 2091. Having 65 years remaining we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
An example of a Lease Extension decision 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 affected 1 flat. The unexpired term was 60.45 years.