Top reasons for Osterley lease extension

Main reasons to start your Osterley lease extension today:

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

Osterley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Osterley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Osterley you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold properties in Osterley with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.

Lenders may not lend with a short lease

The propensity since the credit crunch has been for banks to tighten lending requirements generally - this has extended to the property over which the mortgage is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically mortgage companies would grant a mortgage on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Osterley?

Irrespective of whether you are a tenant or a freeholder in Osterley,the lease extension lawyers that we work with will always be prepared 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 Studies:

Isabel, Osterley, North London,

Off the back of unsuccessful discussions with the landlord of her first floor apartment in Osterley, Isabel commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The transaction completed in September 2011. The freeholder’s costs were negotiated to under five hundred pounds.

Osterley case:

Last Winter we were contacted by Ms Phoebe Garcia , who moved into a studio flat in Osterley in September 2008. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Osterley with a long lease were valued about £275,000. The mid-range ground rent payable was £55 billed annually. The lease ran out in 2102. Taking into account 76 years remaining we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.