When it comes to domestic leasehold property in Osterley, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Osterley with a lease nearing 81 years unexpired should seriously think of extending it without delay. Once the lease term has fewer than eighty years outstanding, under the relevant legislation the freeholder can calculate and demand a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Osterley with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service gives you increased control over the value of your Osterley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Samuel was the the leasehold proprietor of a high value apartment in Osterley on the market with a lease of just over sixty years unexpired. Samuel on an informal basis approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Samuel to invoke his statutory right. Samuel procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2014 we were phoned by Dr B Clark who, having acquired a studio flat in Osterley in January 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Osterley with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2105. Given that there were 79 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Osterley residence 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.