Osterley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Osterley residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Osterley you should investigate if your lease has between 70 and 90 years remaining. There are good reasons why a Osterley leaseholder with a lease having around eighty years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Osterley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Osterley valuers.
Subsequent to unsuccessful negotiations with the landlord of her studio flat in Osterley, Courtney started the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in July 2011. The landlord’s fees were negotiated to a tad over 700 pounds.
Mr T Adams owned a basement apartment in Osterley in September 2003. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable flats in Osterley with an extended lease were worth £168,800. The average ground rent payable was £60 billed monthly. The lease elapsed in 2081. Taking into account 55 years unexpired we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of legals.
An example of a Lease Extension case for a Osterley flat 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 was in relation to 1 flat. The unexpired lease term was 60.45 years.